As Chinese shares bounces, Asian stocks also rose on Wednesday. Still investors are not sure about taking decisions as Presidents Donald Trump and Xi Jinping have summit on Thursday.
Among the top gainers, Construction counters were there in the mainland, followed by Hong Kong after Beijing on Saturday. An announcement is made by Beijing for building a Xiongan New Area, a replica model on the Shenzhen special economic zone, next to Hong Kong as it helped to bring China’s economic reforms in 1980. After long weekend, mainland markets were reopened on Wednesday.
The new zone, which is jumped by the 10% daily trade limit, is likely to benefit shares of more than thirty listed companies.
The Shanghai and Hong Kong is leading the region by gaining 0.8% and 0.4%, whereas, outside Japan MSCI’s broadest index of Asia-Pacific shares rose by 0.4%.
Before the Trump/Xi summit, Japanese yen remained well supported and investors remained highly cautious with their safe-haven assets like gold. The meeting between two presidents is first since Trump took the office and is likely to set trade and security issues prominently.
Conita Hung, an independent market strategist in Hong Kong said, “This is a very headline-driven market and the only source of optimism is the new economic zone news over the weekend – but that is unlikely to be sustainable.”