Business

China stocks climb to 10-month high as Trump fears turn to hope

Latest Update: November 10, 2016 | 145 Views
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China stocks rose to a fresh 10-month high on Thursday, joining a surprise turnaround in global markets in the wake of a shock win for Republican Donald Trump in the US presidential election.

The benchmark Shanghai Composite Index gained 1.4 per cent to 3,171 points, its highest since January 8, while the blue-chip CSI300 index advanced 1.1pc to 3,390 points.

Trump’s stunning upset roiled global markets on Wednesday, sending investors scrambling for safe-haven assets such as gold, sovereign bonds, and the Japanese yen.

Overnight, though, riskier assets staged a sharp reversal as traders reassessed the implications of a Trump presidency, with many seeing it ushering in higher economic growth.

China’s markets, which are typically shielded from global market volatility by strict capital controls, have been slowly grinding higher this year as buyers have been encouraged by lower valuations and signs of stabilisation in the economy.

Reversing their sharp gains the previous session, gold miners retreated as risk appetite returned. All major sectors gained, led by financial and industry stocks.

Chinese property developer giant Vanke traded up 1pc, surging as much as 7.5pc to a record high, but pared much of its gains in late afternoon trading. China Evergrande Group, a real estate conglomerate, has further raised its stake in Vanke to 8.3pc.

Reuters