China stocks track global peers higher as investors gauge US rate outlook

Apr 24, 202408:56 UTC

China stocks closed up on Wednesday and tracked global peers higher as market sentiment was buoyed by upbeat earnings from U.S. companies and rate-cut relief after data showed U.S. business activity cooled in April.

Lifting sentiment, UBS analysts forecast foreign investors to gradually return to China's market via the Stock Connect as market sentiment and the macro environment improve. The bank's strategists upgraded MSCI China equities to "overweight" on Tuesday.

Asian stocks tracked Wall Street higher as an after-hours surge in U.S.-listed shares of electric vehicle maker Tesla TSLA and upbeat earnings from some U.S. companies lifted risk sentiment.

Traders also found comfort in data that signalled U.S. business activity cooled in April to a four-month low due to weaker demand, while rates of inflation eased slightly, suggesting some possible relief for the Federal Reserve.

** At the close, the Shanghai Composite index 000001 was up 0.76% at 3,044.82.

** The blue-chip CSI300 index 3399300 was up 0.44%, with its financial sector sub-index 3399914 higher by 0.15%, the consumer staples sector 0000912 up 0.11%, the real estate index 000952 down 0.3% and the healthcare sub-index 399913 down 0.75%.

** The smaller Shenzhen index 399106 ended up 1.18% and the start-up board ChiNext Composite index 3399006 was higher by 0.699%.

** The Hang Seng index HSI closed up 372.34 points or 2.21% at 17,201.27. The Hang Seng China Enterprises index HSCEI rose 2.45% to 6,100.22.

** The sub-index of the Hang Seng tracking energy shares (.HSCIE) rose 0.7%, while the IT sector (.HSCIIT) rose 3.97%, the financial sector (.HSNF) ended 1.68% higher and the property sector rose 1.81%.

** Chinese artificial intelligence (AI) software developer SenseTime Group Inc 20 were halted from trading, after soaring as much as 36.1%, their biggest one-day gain since January 2022.

** Around the region, MSCI's Asia ex-Japan stock index (.MIAPJ0000PUS) was firmer by 1.69%, while Japan's Nikkei index NI225 closed up 2.42%.