INSUBCONTINENT EXCLUSIVE:
SHANGHAI: China stocks reversed course to end higher on Tuesday, led by gains in consumer and financial shares, as investors chased firms
with low valuations following recent upbeat factory data.
The blue-chip CSI300 index rose 0.4 per cent to 3,851.09, while the Shanghai
Composite Index closed up 0.3 per cent at 2,884.70.
The benchmark Shanghai index briefly hit a more than three-month low in early morning
trade, as Washington's latest tariffs added to jitters over the prospects of a so-called "phase one" Sino-US trade deal.
Helping recoup
losses were consumer discretionary and financial stocks, with bellwether Gree Electric climbing 5.4 per cent.
Market was also underpinned by
robust northbound inflows via the Stock Connect linking Hong Kong and Shanghai, which totalled 4.6 billion yuan for the day, as foreign
investors increase their China exposure.
For now, it's a relatively good choice to pursue the strategy of buying stocks with low
valuations as China's temporary economy stabilization due to countercyclical policies would help promote risk appetite for those players,
including financial firms, Changjiang Securities noted in report.
Factory activity in China unexpectedly returned to growth in November for
the first time in seven months, as domestic demand picked up on Beijing's accelerated stimulus measures to steady growth.
Around the
region, MSCI's Asia ex-Japan stock index was weaker by 0.43 per cent, while Japan's Nikkei index closed down 0.64 per cent.
At 07:19
GMT, the yuan was quoted at 7.0409 per US dollar, barely changed from its previous close.
So far this year, the Shanghai stock index is up
15.7 per cent and the CSI300 has risen 27.9 per cent, while China's H-share index listed in Hong Kong is up 2.4 per cent
Shanghai stocks have risen 0.44 per cent this month.
As of 07:20 GMT, China's A-shares were trading at a premium of 29.08 per cent over
the Hong Kong-listed H-shares