China Market gains on progress in Russia-Ukraine talks

30 Mar 2022 , 06:14 PM

The Mainland China share market finished session higher on Wednesday, 30 March 2022, as risk sentiment got a boost from progress in talks between Russia and Ukraine and optimism that Chinese authorities could announce moves to support growth.

However, market gains capped amid lingering concerns about the countrys economic outlook, with Chinas most populous city and financial centre, Shanghai, continuing to grapple with a staggered lockdown to contain a local COVID-19 surge. The city on Wedneday expanded its lockdown earlier than scheduled as it reported a total of 5,982 new local coronavirus cases.

At close of trade, the benchmark Shanghai Composite Index surged 1.96%, or 62.66 points, to 3,266.60. The Shenzhen Composite Index, which tracks stocks on Chinas second exchange, added 2.55%, or 53.14 points, to 2,137.61. The blue-chip CSI300 index added 2.9%, or 119.963 points, to 4,254.10.

Risk appetite among global financial markets had improved on the positive development in Ukraine-Russia peace talks after Russia on Tuesday promised to scale down military operations around Ukraines capital Kyiv, while Ukraine proposed adopting a neutral status in face-to-face negotiations.

CURRENCY NEWS: Chinas yuan was up against the U.S. dollar after the central bank set its strongest daily fixing in seven days, and as hopes for Ukraine-Russia peace talks lifted global risk appetite.

Prior to market opening, the Peoples Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.3566 per dollar, 0.12% firmer than the previous fix 6.364. In the spot market, the yuan CNY=CFXS was trading at 6.595 around late afternoon, 0.06% firmer than the previous late session close.

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