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Shanghai soars more than 4%, leading gains in Asia as ‘bull sentiment’ drives markets

https://www.cnbc.com/2020/07/06/asia-markets-coronavirus-us-china-tensions-currencies-in-focus.html

Stocks in Asia Pacific were higher in Monday trade, with stocks in mainland China leading gains regionally.

The Shanghai composite soared 4.24% in morning trade while the Shenzhen component rose 3.29%. The Shenzhen composite also jumped 3.1%

Jackson Wong, asset management director at Amber Hill Capital, told CNBC in an email that “bull sentiment” in mainland Chinese shares was “driving the markets.”

Wong said the “sudden surge” in trading volume, as well as a break out for the Shanghai composite last week, raised investor expectations that “another bull run is coming.” Some of the reasons he suggested for the uptick in sentiment included the country being less affected by the coronavirus outbreak at the moment.

Bank of Communications’ Hao Hong agreed partly with Wong’s assessment, telling CNBC that the Shanghai composite has “broken through” its 850-day long-term moving average.

“The market continues to believe that the central bank will ease more, as seen by China’s recent credti and monetary expansion,” Hong,

Meanwhile, Hong Kong’s Hang Seng index also saw robust gains, rising 3.15% in morning trade.

Elsewhere in the region, the Nikkei 225 in Japan rose 1.55% while the Topix index added 1.45%. South Korea’s Kospi advanced 1.38%.