June 10, 2019 / 7:43 AM / a year ago

Shanghai shares snap 6-session losing streak on trade, stimulus hopes

* SSEC up 0.9%, CSI300 rises 1.3%

* U.S. Treasury’s Mnuchin says Trump-Xi meeting has parallels to Buenos Aires summit

* China exports grow despite US tariffs, but imports slump most in nearly 3 years

SHANGHAI, June 10 (Reuters) - Shanghai stocks closed higher on Monday, snapping a six-session losing streak, as worries over trade tensions eased after an agreement between the United States and Mexico to avert a tariff war, and as weak data boosted stimulus hopes.

** The blue-chip CSI300 index rose 1.3%, to 3,610.74, while the Shanghai Composite Index gained 0.9% to 2,852.13.

** The United States and Mexico struck a deal on Friday, with Mexico agreeing to rapidly expand a controversial asylum programme and deploy security forces to stem the flow of illegal Central American migrants.

** A highly anticipated late June meeting between U.S. President Donald Trump and Chinese President Xi Jinping has some parallels with their Buenos Aires summit last December that postponed a tariff hike, U.S. Treasury Secretary Steven Mnuchin said on Saturday.

** The A-share market could continue to be favoured by foreign money, if negative factors affecting stock valuations are eliminated and (the Sino-U.S.) trade dispute is resolved to some extent, as markets with low valuations would be more attractive to foreign money amid signals of easing by global central banks, Fortune Securities noted in report.

** China’s exports unexpectedly returned to growth in May despite higher U.S. tariffs, but imports fell the most in nearly three years in a further sign of weak domestic demand that could prompt Beijing to step up stimulus measures.

** “We believe Beijing will likely step up its stimulus measures to stabilise financial markets and growth,” economists at Nomura said in a note to clients.

** Easing worries over capital outflows, China’s foreign exchange reserves unexpectedly bounced back in May after a surprise drop the previous month.

** The rally on the mainland was also aided by strong foreign inflows, with foreigners via the Stock Connect buying more than 8 billion yuan ($1.15 billion) worth of A-shares on Monday.

** Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.98%, while Japan’s Nikkei index closed up 1.2%.

** At 07:15 GMT, the yuan was quoted at 6.9328 per U.S. dollar, 0.3% weaker than the previous close of 6.9118.

** The largest percentage gainers on the main Shanghai Composite index were JINJIAN CEREALS INDUSTRY CO LTD , up 10.08%, followed by Changchun Sinoenergy Corp , gaining 10.07% and Lanzhou LS Heavy Equipment Co Ltd, up by 10.07%.

** The largest percentage losses on the Shanghai index were Shenzhen Kingdom SCI-Tech Co Ltd down 10.02%, followed by ZHEJIANG DIBAY ELECTRIC Co Ltd losing 10% and Tibet Summit Resources Co Ltd down by 10%.

** So far this year, the Shanghai stock index is up 14.4% and the CSI300 has risen 19.9%, while China’s H-share index listed in Hong Kong is up 4.1%. Shanghai stocks have declined 1.61% this month.

** As of 07:16 GMT, China’s A-shares were trading at a premium of 25.81% over the Hong Kong-listed H-shares.

$1 = 6.9321 Chinese yuan Reporting by Shanghai Newsroom

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