Oil, stimulus hopes nudge Shanghai Index to end week higher
Chinese stocks closed higher Friday after both Europe and Japan hinted at more policy stimulus and oil prices rebounded back above $30 a barrel. Data from China’s property sector also gave a lift.
After a roller coaster session in both positive and negative territory, the Shanghai Stock Exchange Composite Index gained 1.3% to 2,917 to end the week marginally high, for the first time in 2016. The benchmark is down about 17% for the year. The Shenzhen Stock Exchange Composite Index rose 1.5% to 1,827. The CSI 300 Index, which track the 300 largest stocks on the mainland added 1% to 3,113, but did not end the week higher. Continuing the trend of volume about a third of last year’s levels, volume was light for the day.
Meanwhile, Japan’s Nikkei jumped nearly 6% as Brent crude oil jumped 6%.
Good news came out of the property market Friday, where data shows a pick-up in lending and the urban unemployment rate stayed unchanged at 4.05%, below the government’s target.
On Thursday, Vice President Li Yuanchao sought to reassure investors that Beijing would use regulations to prevent volatility in a market that was “not yet mature”.
“An excessively fluctuating market is a market of speculation where only the few will gain the most benefit when most people suffer,” Li, who is attending the World Economic Forum in Davos, said in an interview with Bloomberg.