At close of trade, the benchmark Shanghai Composite Index increased by 1.19%, or 37.37 points, to 3,186.43. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 1.57%, or 31.06 points, to 2,006.95. The blue-chip CSI300 index grew 1.55%, or 62.50 points, to 4,091.52.
Markets were boosted by the looming relaxation of some Covid-19 curbs in China. Shanghai authorities is aiming to exit a two-month COVID lockdown conditions and will allow businesses to resume work from Wednesday, 1 June 2022, while Beijing reopened some parts of public transport on Sunday as well as some malls as infections stabilized.
Risk appetite was also supported by stimulus measures announced by Shanghai authorities to support the economy. Shanghai, the country's commercial capital, announced tax breaks and subsidies to help businesses recover from a two-month shutdown.
Shanghai's Vice Mayor Wu Qing said over the weekend that authorities will loosen the conditions under which companies are able to resume work this week, and the city's government laid out a 50-point plan for accelerating the economic recovery.
China's official manufacturing Purchasing Managers' Index for May came in at 49.6, an improvement over April's reading of 47.4, but still below the 50-point mark that separates growth from contraction.
CURRENCY NEWS: China's yuan softened against the U.S. dollar on Tuesday, despite firmer mid-point fixing by central bank. Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.6607 per dollar, 441 pips or 0.66% firmer than the previous fix at 6.7048. Spot market CNY=CFXS opened at 6.6803 per dollar and was changing hands at 6.6678 at midday, 63 pips weaker than Monday's late session close.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
