China stocks reach a 10-1/2 month high, led by financial and energy shares

Source : REUTERS
Last Updated: Tue, Nov 22, 2016 14:58 hrs
China markets

China stocks advanced to a fresh 10-1/2 month high on Tuesday, helped by a strong rally in blue-chips, in particular financial and energy shares, after U.S. exchanges rose.

The blue-chip CSI300 index rose 0.8 percent, to 3,468.36, while the Shanghai Composite Index gained 0.9 percent to 3,248.35 points. Both closed at their highest levels since Jan. 6.

Energy shares were among the biggest gainers, as oil prices rose to their highest level since October on Tuesday and the market priced in a potential output cut led by producer cartel OPEC.

An across-the-board recovery in the commodities futures market also helped lift risk appetites for materials , amid rising expectations of higher inflation.

Financial bellwether China Life climbed to a 10-month high, leading gains in other insurance companies , as investors bet the sector would benefit from rising bond yields and a recovering stock market.

But some analysts cautioned that the rebound could be fragile.

Lianxun Securities advised clients to take a cautious approach, saying that "the rapidly-strengthening U.S. dollar is adding pressure on equities in emerging markets".

Most sectors gained ground, while defensive consumers and properties continued to lag.

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