China stocks snap five-day losing streak
SHANGHAI: Mainland China and Hong Kong stocks advanced on Thursday as sentiment improved after a US trade court blocked President Donald Trump's sweeping tariffs, which had weighed on global trade and roiled financial markets.
Key Chinese stock indexes snapped a five-day losing streak, while the US dollar rallied and gold sank, as risk appetite sharply improved following the court decision.
A US trade court blocked Trump's tariffs from going into effect in a sweeping ruling that found the president overstepped his authority by imposing across-the-board duties on imports from US trading partners.
The benchmark Shanghai Composite index closed up 0.7% at 3,363.45 points, while the blue-chip CHI 300 was up 0.59% at 3,858.7 points. Both indexes booked their first daily gain since May 21.
The smaller Shenzhen index ended up 1.4% and the start-up board Chi Next Composite index was higher by 1.368%.
Hong Kong's benchmark Hang Sen index was up 1.35% at 23,573.38 points, while the Hang Sen China Enterprises index rose 1.37% to 8,559.71 points and the Hang Sen Tech index jumped 2.46%.
However, gains in Chinese shares were capped as uncertainty around bilateral relations between Washington and Beijing lingered, traders and analysts said.
'The ruling gives an interim boost to risk sentiment which saw US equity futures, bond yields and the dollar higher,' said Frances Cheng, head of FX and rates strategy at OCBC Bank.
'Development on tariff and trade relation remains fluid. Investors may be reluctant to load heavy positions on either side of the trade.'
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