Shanghai Stock Index Strengthens 4 Percent
Hong Kong – Asia Pacific stocks mostly rose earlier this week. The Shanghai stock index led the gains by gaining more than four percent.
The Shanghai stock index rose 4.09 percent to 2,654.88. The stock index had risen more than 4.5 percent in early trade.
The Shenzhen stock index climbed 4.8 percent to 1,325.73. The benchmark stock index in China continued its rally since trading last Friday. This is in line with the authority to support the market after China’s economic growth data slowed in the third quarter of 2018.
However, observers are skeptical of the rally taking place on the Chinese stock exchange. “Finally, the fundamentals will still apply,” said OCBC Bank Vice President Vasu Menon, as quoted from CNBC’s website, Monday (10/22/2018).
Menon said there were prolonged concerns over the US and Chinese trade wars. “It looks like it won’t end soon,” he said.
“You see a rebound today, but does that mean the market has changed direction? You know it will hit higher? I’m not sure. I don’t think so,” he said.