China Stocks Gains as PBOC Stands Pat

The Shanghai Composite rose 0.2% to above 3,070 while the Shenzhen Component gained 0.2% to 9,300 on Monday, recouping some losses from the previous session as the central bank kept key lending rates unchanged amid stronger-than-expected first quarter GDP figures and efforts to stabilize the yuan.

The People’s bank of China held its one-year and five-year loan price rates at 3.45% and 3.95%, respectively.

Meanwhile, weak economic numbers for March raised expectations that authorities could ease policy further.

Consumer and new energy stocks led the rebound, with gains from Kweichow Moutai (1.6%), Longi Green Energy (5.4%) and Contemporary Amperex (1.1%).

Meanwhile, technology shares tracked a selloff in semiconductor stocks on Wall Street Friday, with losses from Zhongji Innolight (-8.4%), Foxconn Industrial (-5.5%) and Dawning Information (-4.9%).