Chinese market sprints ahead to close in the green
The Chinese market sprinted ahead in the final half-hour of trade to close in the positive territory on Tuesday, despite investor caution over the resumption of IPOs.
The main Shanghai Composite index finished 5.5 points, or 0.15 percent, above at 3,616. The smaller Shenzhen Composite maintained its positive run throughout the day to close 31 points, or 1.4 percent, higher; the tech-heavy Chinext Composite was up 68 points, or 2.13 percent, while the blue chip CSI 300 Index saw a marginal 0.56 point, or 0.01 percent, gain.
Chinese resources producers felt the effects of low steel, copper, and iron ore prices. Baoshan Steel, Aluminium Corporation of China, and Yunnan Copper all saw losses between 0.5 and 1.14 percent. On a slightly positive note, three-month Copper and Aluminium prices saw positive gains between 1 and 1.6 percent during Asian trade.
Chinese energy plays closed mixed, after spending most of the trading session in the red. Shares of Sinopec were up marginally while Petrochina, and China Oilfield Services saw some decline as oil prices continue to be a concern for investors. In Asian trade, oil was up around 1 percent on the back of the news that Saudi Arabia will work with OPEC countries and other oil producers and exporters to stabilize global prices.
U.S. crude futures were up 40 cents, or 0.96 percent, trading at $42.18 a barrel. The internationally traded Brent crude was trading at $45.21 a barrel, 38 cents or 0.85 higher than the previous session.
Away from the mainland, the Hang Seng index in Hong Kong closed down 0.35 percent lower.
Shares of Guotai Junan climbed back into positive territory after a 15 percent intraday decline in its stock on Monday on the announcement that its chairman and chief executive office, Yim Fung, who is also the fourth biggest shareholder in the company, was missing.
Reports said prior to his disappearance, he was invited to take part in an investigation against the former vice chairman of the China Securities Regulatory Commission.
Guotai Junan said Yim had not been contactable since last Wednesday. In his absence, deputy CEO Wong Tung Ching will be acting as temporary chairman.
Elsewhere, shares of infrastructure company Cheung Kong Infrastructure Holdings and Power Assets Holdings were halted ahead of a shareholder vote on the proposed $13 billion merger of the two companies. Both CKI and Power Assets are affiliated with business tycoon Li Ka-shing.