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Shanghai rises more than 4% as bull sentiment drives markets

Asia Pacific stocks were higher on Monday afternoon, with mainland China’s largest regional gains.

The Shanghai Composite rose 4.57%, while the Shenzhen Component rose 3.1%. The Shenzhen Composite also rose 3.34%

Jackson Wong, wealth management director at Amber Hill Capital, told CNBC in an email that the “bull mood” in mainland Chinese stocks “is driving the markets.”

Wong said that the “sudden surge” in trading volume and a breakout in the Shanghai Composite last week had raised investors̵

7; expectations that “another bull run is imminent”. One of the reasons he suggested for the mood surge was that the country is currently less affected by the outbreak of the coronavirus.

BOCOM International’s Hao Hong told CNBC that the Shanghai Composite had “broken” its 850-day long-term moving average.

“The market continues to believe that the central bank will continue to relax given the recent credit and money expansion in China,” said Hong, managing director and research director of the company. However, he added: “In China the bull comes as fast as he can.”

The Hong Kong Hang Seng Index also posted robust gains, rising almost 3%.

In other parts of the region, the Nikkei 225 rose 1.85% in Japan, while the Topix index rose 1.48%. South Korea’s Kospi grew by 1.57%.

Meanwhile, Australian stocks resisted the general trend at the regional level and fell, with the S & P / ASX 200 falling 0.45%.

Overall, the MSCI Asia ex-Japan index rose 1.49%.

The regional upward trend occurred despite the World Health Organization announcing on Saturday that more than 200,000 coronavirus cases were confirmed within 24 hours – a record.

In the United States, the states of Florida and Texas reported daily record highs in coronavirus cases on Saturday. The recent surge in cases has raised concerns about the possibility of reintroducing barriers to curb the spread of the virus, which could affect the prospects of an economic recovery.

The US dollar index, which tracks the greenback versus a basket of its competitors, was last at 96,933 after having reached an earlier high of 97,195.

The Japanese yen was trading at $ 107.69 a dollar after rising above 108 against the greenback last week. The Australian dollar changed hands at $ 0.6964 after rising from $ 0.684 last week.

Oil prices were mixed on the morning of Asian trading hours, and international reference Brent crude futures rose 0.7% to $ 43.10 a barrel. By contrast, US crude oil futures fell 0.37% to USD 40.50 a barrel.

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