Close higher on US rate cut hopes | Trade Nivesh
Trade Nivesh: China and Hong Kong stocks ended the week on an upbeat note, after a comment from top Federal Reserve official raised hopes of a US interest rate cut later this month, fuelling risk appetite.
The blue-chip CSI300 index rose 1.1 per cent, to 3,807.96, while the Shanghai Composite Index gained 0.8 per cent to 2,924.20. For the week though, CSI300 and SSEC were roughly flat.
New York Fed President John Williams said on Thursday that policymakers could not wait for an economic disaster to hit before adding stimulus, in a speech read as a strong argument in favour of quick monetary action.
The comments by Williams made it a virtual certainty the US Fed would cut interest rates by 25 basis points at its July 30-31 policy meeting and fuelled expectations of an even deeper 50 basis point reduction. Reports of resumption in Sino-US trade talks, and China considering broadening an inbound investment channel by foreign investors also aided sentiment.
US and Chinese officials spoke by telephone on Thursday as the world's two largest economies seek to end a year-long trade war. US Treasury Secretary Steven Mnuchin suggested that in-person talks could follow.
Meanwhile, mood in mainland market was lifted after China's foreign exchange regulator said it was considering increasing or even scrapping quotas under cross-border investment scheme QFII.
Trade Nivesh: China and Hong Kong stocks ended the week on an upbeat note, after a comment from top Federal Reserve official raised hopes of a US interest rate cut later this month, fuelling risk appetite.
The blue-chip CSI300 index rose 1.1 per cent, to 3,807.96, while the Shanghai Composite Index gained 0.8 per cent to 2,924.20. For the week though, CSI300 and SSEC were roughly flat.
New York Fed President John Williams said on Thursday that policymakers could not wait for an economic disaster to hit before adding stimulus, in a speech read as a strong argument in favour of quick monetary action.
The comments by Williams made it a virtual certainty the US Fed would cut interest rates by 25 basis points at its July 30-31 policy meeting and fuelled expectations of an even deeper 50 basis point reduction. Reports of resumption in Sino-US trade talks, and China considering broadening an inbound investment channel by foreign investors also aided sentiment.
US and Chinese officials spoke by telephone on Thursday as the world's two largest economies seek to end a year-long trade war. US Treasury Secretary Steven Mnuchin suggested that in-person talks could follow.
Meanwhile, mood in mainland market was lifted after China's foreign exchange regulator said it was considering increasing or even scrapping quotas under cross-border investment scheme QFII.
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