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Chinese equities hit their highest level this year, defying a decline in the US stock market that pushed it into correction territory overnight amid hopes of further policy support for consumption in Asia’s largest economy.
Chinese authorities announced late on Thursday that they would hold a press conference on “boosting consumption” on Monday. This helped push the country’s CSI 300 benchmark up 2.4 per cent. Hong Kong’s Hang Seng index climbed 2.5 per cent.
Gains were concentrated in stocks with exposure to China’s massive consumer base. Shares in drinks company Kweichow Moutai rose 5.9 per cent, while shares in electric vehicle maker BYD climbed 6.5 per cent. CATL, the world’s largest EV battery maker, rose 3.5 per cent.
China’s economy has slowed in recent years with sluggish consumption reflected in persistently low inflation figures. Many economists have urged Beijing to do more to support the country’s consumers.
US stocks on Thursday entered correction territory after President Donald Trump’s latest tariff threats roiled markets and threatened to spark a wider global trade conflict.
The dollar rose 0.2 per cent against a basket of trading partners’ currencies on Friday, while Japan’s yen slide 0.6 per cent to ¥148.66 a dollar.
Gold was flat while prices for Brent crude, the international oil benchmark, gained 0.9 per cent to $70.47 a barrel.
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