Chinese markets rallied sharply on Tuesday to a maximum of 4 months


Moscow. December 22. Most stock indices in the Asia-Pacific region rose Tuesday when a small volume of trading due to expectations of new stimulus in the Chinese economy, reports Bloomberg.

While the Chinese Shanghai Composite index rose 0.3% and reached a maximum in four months. Since the beginning of the fourth quarter the indicator has gained 20%, leading the rally in the global stock market.

The composite stock index Asia Pacific MSCI rose 0.3%, to 130,43 point, significantly, the stocks of energy companies and consumer goods producers. Trading volumes in Australia, Hong Kong, India and Malaysia were at least 20% less average over 30 days.

Since the beginning of 2015 the MSCI Asia Pacific fell by 5.4%, while the S&P 500 lost 1.8%. The ratio of the shares included in the Asian index, the expected profit is 13.8 x vs. 17.1 x for the S&P 500 and 15.5 for the Stoxx Europe 600.

Japan’s Nikkei 225 declined 0.2 percent but the broader Topix index rose 0.2%.

Hong Kong’s Hang Seng rose 0.2%, Shenzhen Composite index by 0.9%.

The Australian S&P/ASX 200 added 0.2%, South Korean Kospi is up 0.6%.

China’s leadership on Monday gave signals about the possibility of additional support for economic growth, including increased government spending (with potential higher fiscal deficit) and stimulation of the housing market. Based on the news, copper prices rose to their highest level in more than a month, stopped the fall in oil prices.

“The Chinese authorities recognize the need for additional action, and this is a relatively positive factor here,” says a senior Fund Manager at Mizuho Asset Management, Seiichiro Iwamoto.

The share price of Japanese manufacturer of electronic components Mitsumi Electriс jumped 9.9% after the announcement of the planned merger with Minebea in 2017. In this paper Minebea fell by 4.1%.

In Japan, the stocks of pharmaceutical companies due to the news about the research and brokerage upgrades of ratings: Eisai gained 1%, PeptiDream – 7%.

Securities course Chinese copper producer Jiangxi Copper rose by 1.4%. According to informed sources, the copper companies of the PRC in the event of a deterioration of profitability we intend to reduce generation more than the stated 350 thousand tons per year.

Toshiba’s market value declined by 12.3% on Tuesday, bringing the decline over the past two sessions to more than 21%. The company forecasts a record net loss in the amount of 550 billion yen in the current Pingdu.

Quotations of securities of McDonald’s Holdings Co. Japan Ltd. fell by 7.9%. According to the newspaper Nikkei, the parent company of McDonald’s USA plans to sell a third Japanese division.