China Stocks Swing Between Gains and Losses After Inflation Data

Bloomberg, (9/7) -- China’s stocks swung between gains and losses after the release of June inflation data. Health-care companies rose, while consumer-staples and property shares slid. “The CPI and PPI figures were not much of a surprise and the market has reached a consensus that the economy will remain flat going forward,” said Wei Wei, an analyst at West China Securities Co. in Shanghai. “Most of the bad news from the economic front has been priced in and the market is focused on companies’ earnings now.” The Shanghai Composite Index added 0.1 percent to 1,960.29 at 9:47 a.m. local time, after plunging 2.4 percent yesterday. Trading volumes in the index were 28 percent lower than the 30-day average, while 30-day volatility was at 22.9, near a three-month high, according to data compiled by Bloomberg. The CSI 300 Index advanced 0.2 percent to 2,167.78 today, while the Hang Seng China Enterprises Index rose 0.6 percent. The consumer price index rose 2.7 percent from a year earlier, the National Bureau of Statistics said, compared with a median estimate of 2.5 percent in a Bloomberg News survey and a 2.1 percent gain in May. Producer prices fell 2.7 percent. The decline in producer prices compares with the median estimate for a 2.6 percent drop in a Bloomberg survey. The index has fallen for 16 straight months, the longest stretch of declines since 2002. Estimates for June consumer inflation in a Bloomberg News survey of 40 analysts ranged from 2 percent to 3 percent. The government in March said it would aim to keep price gains to about 3.5 percent this year.

Written by: Kontak Perkasa Futures

PT.Kontak Perkasa Futures, Updated at: 9:45 AM