SHANGHAI, Jan 5 (Reuters) – China’s blue-chip index extended gains to hit a five-and-a-half-year high on Tuesday, backed by jumps in consumer stocks, as investors hoped for more steps to invigorate the consumption of the country among the congestive coronavirus.
** The CSI300 blue-chip index rose 1.9%, to 5,368.50, the highest level since June 9, 2015, while the Shanghai Composite Index gained 0.7% to 3,528.68.
** Leading the gains, the CSI300 consumer staples index jumped 5.1%. The CSI300 healthcare and products index climbed 2.2% and 2.6%, respectively.
** “Investors could pay attention to the recovery of residents’ incomes and measures to encourage spending in 2021, as China’s spending recovery was relatively weak in 2020 among the coronavirus revolution, ”Luo Kun, director of macro strategy at Chasing Securities, said in a report.
** Analysts and traders also said investors were becoming more bullish on hopes of more policy support and enough liquidity.
** “The spring rally is here now as investors expect more policy support from Beijing and banks usually lend more at the start of a new year, which would mean more market liquidity , ”Said Fu Yanping, an analyst with China Galaxy Securities.
** Fu said risk appetite also picked up when Beijing pledged continued policy support and a Sino-European investment deal.
** China said last year that it would maintain support for economic recovery, avoiding a sudden shift in policy, to help keep growth within a reasonable range in 2021.
** Around the region, MSCI’s stock index in Asia outside Japan was stronger by 1.12%, while Japan’s Nikkei index closed down 0.37%.
** At 7:20 GMT, the yuan was traded at 6.46 US dollars, 0.03% firmer than the previous close of 6.462. (Reporting by Shanghai Newsroom; Editing by Shailesh Kuber)