February 27, 2019 / 4:27 AM / 24 days ago

China, Hong Kong stocks climb after Fed chief comments

* SSEC up 0.8 pct, CSI300 gains 0.4 pct, HSI rises 0.5 pct

* HK->Shanghai Connect daily quota used 6.6 pct, Shanghai->HK daily quota used -1.3 pct

* FTSE China A50 +0.0 pct, BNY Mellon ADR China Select Index -0.2 pct

SHANGHAI, Feb 27 (Reuters) - China and Hong Kong stocks rose on Wednesday, after Federal Reserve Chairman Jerome Powell reinforced the U.S. central bank’s recent shift towards a more “patient” approach on policy in the face of a slowing economy.

** The CSI300 index rose 0.4 percent to 3,700.16 points at the end of the morning session, while the Shanghai Composite Index gained 0.8 percent to 2,964.77 points.

** The Hang Seng index added 0.5 percent to 28,910.83 points, while the Hong Kong China Enterprises Index gained 0.1 percent to 11,554.23.

** The Fed is in “no rush to make a judgment” about further changes to interest rates, Powell told U.S. lawmakers on Tuesday as he spelled out the central bank’s approach to an economy that is likely slowing.

** In two hours of testimony to the Senate Banking Committee, Powell elaborated on the “conflicting signals” the Fed has tried to decipher in recent weeks, including disappointing data on retail sales and other aspects of the economy that contrast with steady hiring, wage growth, and ongoing low unemployment.

** Mainland and Hong Kong stocks also got some support after the PBOC said it will encourage financial market innovation to boost the economy.

** On the mainland, trust-related firms surged after reports that Beijing will lower the threshold for the investment in trust products, adding to signs that Beijing is loosening financial regulation to boost the real economy.

** The CSI financials index has gained 24.8 percent so far this year, as Beijing continues to open up its financial markets and deepen reforms in the sector to help prop up the cooling economy.

** As China has responded to the threat of escalating trade tariffs by increasing its monetary and fiscal stimulus, some U.S.-based fund managers say they are becoming more bullish on China regardless of whether a trade agreement is reached over the next few months.

** Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.19 percent while Japan’s Nikkei index was up 0.48 percent.

** The yuan was quoted at 6.693 per U.S. dollar, 0.1 percent firmer than the previous close of 6.6999.

** The largest percentage gainers in the main Shanghai Composite index were Sichuan Hongda Co Ltd, up 10.13 percent, followed by Maoye Commercial Co Ltd, gaining 10.1 percent and Shanghai DZH Ltd, up by 10.03 percent.

** The largest percentage losses in the Shanghai index were Changshu Fengfan Power Equipment Co Ltd, down 10.03 percent, followed by Xinhuanet Co Ltd, losing 8.84 percent and Eastern Gold Jade Co Ltd, down by 7.95 percent.

** So far this year, the Shanghai stock index is up 17.95 percent, while China’s H-share index is up 14.0 percent. Shanghai stocks have risen 13.81 percent this month.

** The top gainers among H-shares were Air China Ltd , up 3.93 percent, followed by People’s Insurance Company Group of China Ltd, gaining 1.67 percent and Guangdong Investment Ltd, up by 1.61 percent.

** The three biggest H-shares percentage decliners were Great Wall Motor Co Ltd, which has fallen 3.29 percent, China Huarong Asset Management Co Ltd, which has lost 2.6 percent and Byd Co Ltd, down by 2.1 percent.

** About 26.43 billion shares have traded so far on the Shanghai exchange, roughly 127.0 percent of the market’s 30-day moving average of 20.81 billion shares a day. The volume traded was 56.56 billion as of the last full trading day.

** As of 04:02 GMT, China’s A-shares were trading at a premium of 22.02 percent over the Hong Kong-listed H-shares.

Reporting by Luoyan Liu and John Ruwitch; Editing by Rashmi Aich

Nuestros Estándares:Los principios Thomson Reuters
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