China markets set to reopen with a roar after week-long break
Mainland markets open at 0130 GMT
Offshore trade points to sharp gains
Traders see test ahead in coming sessions
SINGAPORE, Oct 8 (Reuters) -Chinese markets were poised for gains and volatility on Tuesday as the return from a week-long holiday was in global focus given the blistering pre-break rally on bets Beijing's stimulus would improve the economy.
Traders said the market open at 9.30 a.m. local time (0130 GMT) will be a barometer of sentiment - which had swung from despair to euphoria in a matter of days - and the coming sessions may test the stunning momentum.
Singapore-traded FTSE China A50 futures SFCc1 have gained some 14% since China's cash markets closed on Sept. 30 and Hong Kong's Hang Seng China Enterprises index .HSCE was up 11% over the same period, pointing to a catch-up rally for the mainland.
U.S. A-share ETFs FXI.N, ASHR.K rose sharply on Monday, though the Golden Dragon index .HXC of U.S-listed Chinese shares was bumpy and closed the session flat. Hang Seng futures HSIc1 were steady, following Monday gains in Hong Kong.
"All eyes (are) on China's reopening," said National Australia Bank's senior currency strategist, Rodrigo Catril in a note to clients.
"Now the market is seemingly on a wait and see mode, hoping for some concrete stimulus signs that can justify the recent move up in equity prices."
A press conference from the National Development and Reform Commission called for 0200 GMT is in focus for further details of the promises and hints that drove the market frenzy.
Before the break, China announced the most aggressive stimulus measures since the pandemic and the CSI300 gained 25% over five sessions. Turnover soared as heavy buying strained brokers and trading systems, and last Monday the CSI300 .CSI300 and the Shanghai Composite .SSEC both notched their largest gains since 2008.
Authorities have cut rates and hinted at fiscal support to shore up an economy that, by Chinese standards, is ailing.
Before the Golden Week holiday break, hedge fund manager David Tepper said on CNBC the moves were encouraging enough that he would buy "everything" on China.
But gains have been so large that others now urge caution.
"China's weighting in the MSCI EM Index rose from 24% in Aug to 30% now, and its continued outperformance may drive a self-reinforcing 'pain-trade' before the year-end," Bank of America analysts said in a note on Monday.
However, they said, the "'buy everything' stage will be over soon," with market momentum, fiscal support, earnings, the U.S. election and further policy settings all part of the outlook.
"Consumer, property (and) broker stocks could be profit-taking candidates ... big cap internet and high-yield SOEs are our preferred exposure," they said.
In currency markets China's offshore yuan CNH=D3 eased against a rising dollar during the break, but rebounded on Monday to 7.0724 per dollar. Onshore, the yuan CNY=CFXS had closed at 7.0175 per dollar before the holiday.
China stocks rally strongly https://reut.rs/3ZQNtV0
China's benchmark stock index logs biggest daily gain since 2008 https://reut.rs/4dmrDfq
Reporting by Tom Westbrook; Editing by Jamie Freed
Aset Terkait
Berita Terbaru
Pengungkapan: Entitas XM Group menyediakan layanan khusus eksekusi dan akses ke Fasilitas Trading Online kami, yang memungkinkan Anda untuk melihat dan/atau menggunakan konten yang tersedia pada atau melalui situs, yang tidak untuk mengubah atau memperluas, serta tidak mengubah atau memperluas hal tersebut. Akses dan penggunaan ini selalu sesuai dengan: (i) Syarat dan Ketentuan; (ii) Peringatan Risiko; dan (iii) Pengungkapan Penuh. Oleh karena itu, konten disediakan hanya sebagai informasi umum. Anda juga harus ketahui bahwa konten Fasilitas Trading Online kami bukan sebagai ajakan atau tawaran untuk untuk melakukan transaksi apa pun di pasar finansial. Trading di pasar finansial mana pun melibatkan tingkat risiko yang signifikan pada modal Anda.
Semua materi yang diterbitkan di Fasilitas Trading Online kami hanya untuk tujuan edukasi/informasi dan tidak boleh mengandung nasihat dan rekomendasi finansial, pajak investasi atau trading, catatan harga trading kami, penawaran, permintaan, transaksi dalam instrumen finansial apa pun atau promo finansial untuk Anda yang tidak diminta.
Konten pihak ketiga apa pun, serta konten yang disiapkan oleh XM, seperti opini, berita, riset, analisis, harga, informasi lain atau link ke situs pihak ketiga yang tersedia "sebagaimana adanya", sebagai komentar pasar umum dan bukan menjadi nasihat investasi. Sejauh konten apa pun ditafsirkan sebagai penelitian investasi, Anda harus memperhatikan dan menerima bahwa konten tersebut tidak dimaksudkan dan belum disiapkan sesuai dengan persyaratan hukum yang dirancang untuk mempromosikan kemandirian riset investasi dan dengan demikian akan dianggap sebagai komunikasi pemasaran di bawah hukum dan peraturan yang relevan. Mohon dipastikan bahwa Anda telah membaca dan memahami Notifikasi pada Riset Investasi Non-Independen dan Peringatan Risiko kami mengenai informasi di atas, yang dapat diakses disini.
