China shares surge in catch-up to global rebound; profit taking hits Hong Kong

jueves 8 de octubre de 2015 00:53 GYT
 

SHANGHAI Oct 8 (Reuters) - China stocks jumped around 4 percent on Thursday as they caught up to a rebound in global markets after a week-long holiday, but traders said the "risk-on" mood would soon be put to the test ahead of earnings reports and a slew of economic data.

Highlighting the fragility of recent gains, investors took profits on Hong Kong shares which had jumped 8 percent during China's "Golden Week," sending the city's benchmark indexes lower.

China's CSI300 index rose 4.1 percent to 3,333.24 points by the end of the morning session, while the Shanghai Composite Index gained 3.8 percent to 3,167.79, but they still remained nearly 40 percent below their mid-June highs.

"Chinese shares got a boost from the global market, especially the U.S. market," said Xiao Shijun, an analyst at Guodu Securities in Beijing.

While Chinese markets were closed for the Oct 1-7 National Day holiday, the Dow Jones Industrial Average rose nearly 4 percent while global oil prices also enjoyed a robust rebound, boosting shares of resource companies.

But traders said the euphoria could be short lived, with Ningxia Xinri Hengli Steel Wire Co set to become the first Shanghai-listed firm to publish third-quarter earnings on Friday.

While China's army of retail investors do not react as often or as quickly to earnings reports as those in developed markets, traders are bracing for bad news.

Data last month showed profits earned by Chinese industrial companies declined at the sharpest rate in four years in August as costs kept rising and product prices kept falling, adding to signs of weakness in the world's second-largest economy.

A slew of economic indicators, including September data and third-quarter GDP, also will be released over the coming weeks, and will be scoured for any clues on whether the economy is starting to bottom out or continuing to cool.   Continuación...