Yuan at Record High, Energy Stocks Rise

123jump.com Staff
06 Jun, 2008
New York City

Yuan rose to a record high against the U.S. dollar. Yuan rose to 6.923 to a dollar. The chinese currency gaied 5.5% so far this year after rising 6.9% in 2007. Rising crude oil price lifted stocks in the energy sector and dragged airlines stocks lower. China''s fiscal revenue rose 29.4% from the year ago and corporate income tax revenue declined 12%.

[R]6:00AM New York, 6:00PM Hong Kong – Hang Seng rose and crude oil price increased in the regional trading.[/R]

Hong Kong stock averages rose after oil prices posted their biggest one day jump and the European Central Bank intimated that it may increase interest rates next month.

Market sentiment

In Hong Kong trading the Hang Seng Index rose 0.61% or 146.89 at 24,402.18, while the China Enterprises Index of Hong Kong listed mainland shares, or H shares, increased 1.18% or 158.17 to 13,513.21. In Shanghai trading CSI 300 Index fell 0.64% or 22.64 at 3,489.50.

Daily turnover on main-board was HK$58.62 billion compared with HK$63.7 billion yesterday.

China fiscal revenue increase 29.4% in the first four months

Xinhua News Agency reported yesterday that according to China Securities Journal China’s fiscal revenue climbed 29.4% from a year ago to Rmb 2.28 trillion in the first four months of 2008.

April’s revenue advanced 17% year-on-year to Rmb 682.5 billion, while the growth rate in April fell 7.7% points from the previous year on weaker profits.

However, corporate income tax revenue declined 11.9% in April from a year ago and 11.7% from the previous month. The report added that the growth slowdown is expected to persist through 2008.

Total fiscal revenues advanced 32.4% to Rmb5.13 trillion in 2007.

Yuan rises to record high

The China Foreign Exchange Trading System reported today that the Renminbi rose to 6.9238 against the dollar today, record high since July 2005. The RMB has gained 5.5% against the dollar so far this year on top of 6.9% last year.

Gainers & Losers

Hong Kong stocks rose driven rising oil prices. Crude oil prices jumped to above $128 a barrel. CNOOC increased 3.1% and PetroChina jumped 1.3% as a result. Sinopec Corp advanced 2.9% on speculation that it might privatize and shore up its stake in its subsidiaries.

Airlines fell as well. Cathay Pacific Airways fell 3.2% and China Southern Airlines declined 2.4%. Yanzhou Coal recovered 3.7%, China Shenhua gained 2.1% and China Coal Energy advanced 1.1%.

China Mobile and China Life increased 0.5% and 1% respectively. The Industrial & Commercial Bank of China edged up 1.4% after it reported yesterday that it is aiming at becoming the world’s most profitable lender in less than five years.

Asian markets review

In Tokyo Nikkei 225 Index closed higher 148.32 or 1.03% to 14,489.44, in Hong Kong Hang Seng index increased 146.89 or 0.61% closed to 24,402.18. In Australia ASX 200 index higher 62.00 or 1.12% to close 5,592.10. In Malaysia KL Composite index increased 25.01 or 2.04% closed to 1,248.57.

In Thailand SET index closed higher 7.51 or 0.93% to 817.33 and Indonesia JSE Index edged increased 2.56 or 0.11% to 2,402.24. Sensex index in India decreased 197.54 or 1.25% to 15,572.18. Market of South Korea was closed today.