Chinese authorities accelerated a shift toward reopening the economy, with Shanghai and Hangzhou easing some Covid restrictions, signaling more easing may come in the nation, which has been under strict Covid-related restrictions for more than two years.
At close of trade, the benchmark Shanghai Composite Index surged 1.76%, or 55.67 points, to 3,211.81. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 0.88%, or 18.03 points, to 2,062.63. The blue-chip CSI300 index grew 1.96%, or 75.93 points, to 3,946.88.
China's abrupt U-turn to ease stringent Covid curbs continued on Sunday as it relaxed more restrictions in cities including in Shanghai Hangzhou amid fears of a surge in Covid-19 infections as negative test requirements are slackened for accessing public transport and spaces across the country.
Shanghai and Hangzhou join other populous cities like Beijing, Guangzhou, Chongqing and Tianjin in easing 'zero-Covid'-related restrictions, a week after citizens came out to the streets, protesting against the strategy in a rare show of widespread public discontent.
The local government of Urumqi, the capital of Xinjiang in China's remote northwest, announced on Sunday that markets, restaurants and malls in the city will reopen from Monday, marking the end of nearly 100 days of lockdown.
China reported 31,824 new Covid-19 infections and two new deaths on Sunday, the national health commission said in its daily bulletin
The rally was mainly driven by the gains in airlines, casinos, restaurant operators and other stocks expected to benefit from a reopening of the world's second-largest economy. Investors are increasingly seen shifting their bets to longer-term plays such as consumer and health-care equities, from travel and catering firms whose shares have jumped sharply.
CURRENCY NEWS: The Chinese currency strengthened to around 7 against the U.S. dollar following the latest reports that signaled further loosening of China's Covid policies. The Chinese currency was also bolstered by expectations of slower U.S. interest rate hikes. The offshore yuan traded at 6.9861 against the greenback, strengthening past 7-levels for the first time since mid-September.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
