Shanghai Indexes Jump 1% After Investors Return from 5-day Holidays

Li Chen
06 May, 2024
Hong Kong

After a week of holidays, investors retuned with a positive mood and bid up stocks in Shanghai. 

Stock market indexes in Shanghai advanced more than 1% after investors played catch with a flood of earnings, rising global markets, and improving market sentiment in Asia. 

Investors also bid up stocks in the hopes that Chinese regulators, the People's Bank of China, and governments will follow through with market-supportive measures released last month. 

The CSI 300 index soared 1.4% to 3,654.68, and the Hang Seng Index increased 0.2% to 18,513.01. 

The Hang Seng index advanced for the ninth month in a row as bargain hunters and state-controlled entities stepped up buying stocks. 

Tencent Holdings added 1.1% to HK$3,654.68, Baidu Inc. advanced 1.5% to HK$113.41, and Alibaba Group jumped 0.05% to HK$79.20.

Financial stocks declined and did not participate in the market rally in Hong Kong. 

Ping An, Bank of China, China Construction Bank, ICBC, and Hong Kong Shanghai Bank fell between 0.3% and 1.4%. 

Electric vehicle markers were among the most actively traded stocks in Monday's trading. 

Li Auto, Xpeng, and BYD declined between 1% and 4%, but Nio rose 2.5%. 

Elsewhere in Asia, market indexes in Mumbai lacked direction amid a flood of positive earnings, and in Sydney, they advanced 0.7%, tracking gains in Friday's trading. 

Late evening on Friday, the U.S. monthly net new job gains slowed in April to 175,000 from the revised gain of 315,000 as the job market cooled. 

In Europe, market indexes advanced after the jobless rate held steady at 6.5% for the third month in a row in March. 

In Monday's trading, Asian markets opened higher, but after three hours of trading, they traded sideways, tracking gains in Friday's trading in New York. 

Financial markets in Tokyo and Seoul are closed for a holiday.