Update | China stocks battle for sixth straight day of gains, led by energy and shipping
Energy sector rode oil prices to overnight gains but investors cautious ahead of China trade data
China stocks finished higher after wild swings on Tuesday, securing a six-day winning streak, as analysts suspected state-sponsored funds bought shares to shore up the markets amid disappointing export data.
The Shanghai Composite Index declined 3 per cent in the morning, but got a boost from some oil and shipping stocks in late trading, which helped to lift the benchmark into positive territory. It ended 0.1 per cent higher or 4.05 points to 2,901.39. The large-company tracking CSI300 inched up 0.1 per cent, or 2.83 points, to close at 3,107.67.
The Nasdaq-style ChiNext Index also experienced a rollercoaster ride. It briefly sank more than 4 per cent, then shot higher, rising 2.5 per cent or 48.86 points to finish at 2,002.19. The Shenzhen Composite Index gained 0.5 per cent, or 8.89 points, at 1,750.54.
Turnover for Shanghai and Shenzhen markets increased 11 per cent to 533 billion yuan (HK$636.1 billion) from 479 billion yuan on Monday.
In Hong Kong, the Hang Seng Index dropped 0.7 per cent or 148.14 points to 20,011.58, and the Hang Seng China Enterprises index lost 1.4 per cent or 121.09 points to 8,505.22.
The initial heavy decline in stocks came after China’s customs authority reported that exports slumped 25 per cent year-on-year in US dollar terms in February, missing consensus market estimates of a 13 per cent fall. It also marked the worst drop for China’s exports since May 2009. Meanwhile, customs authority data showed imports decreased 13.8 per cent, also well below market expectations.
“Exports data surprised significantly on the downside, weighing on overall activity growth,” Goldman Sachs said in a research note Tuesday.
