Shanghai stocks end higher as Trump, Kim sign 'comprehensive' deal at summit

12 June 2018 - 09:36 By Reuters
North Korea's leader Kim Jong Un (L) and US President Donald Trump leave following a signing ceremony during their historic US-North Korea summit, at the Capella Hotel on Sentosa island in Singapore on June 12 2018
North Korea's leader Kim Jong Un (L) and US President Donald Trump leave following a signing ceremony during their historic US-North Korea summit, at the Capella Hotel on Sentosa island in Singapore on June 12 2018
Image: AFP/SAUL LOEB. File photo.

Shanghai stocks recovered from early losses to end higher on Tuesday, as sentiment improved after US President Donald Trump and North Korean leader Kim Jong Un signed a 'comprehensive' deal aimed at the denuclearisation of the Korean peninsula.

The blue-chip CSI300 index ended 1.2% higher at 3,825.95 points, while the Shanghai Composite Index ended up 0.9% at 3,079.80 points, snapping a three-session losing streak. There were no immediate details on the contents of the document, but Donald Trump said he expected the denuclearisation process to start "very, very quickly".

Sectors rallied across the board, led by consumer and healthcare firms. Jiangsu Yanghe Brewery rose 6.4% to a record high, while the world's most valuable liquor maker Kweichow Moutai also closed at a fresh peak. However, caution still prevailed, with more than a dozen of stocks plunging to their lower limit of 10%, as investors worried about liquidity conditions amid credit risks and more listings by technology giants that could sap the already-tight funding.

US President Donald Trump and North Korean leader Kim Jong Un have signed a “comprehensive” document following talks on ways to end a nuclear standoff on the Korean peninsula.

Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.16%, while Japan's Nikkei index closed up 0.33%. At 0701 GMT, the yuan was quoted at 6.4023 per US dollar, 0.04% firmer than the previous close of 6.4047.

The largest percentage gainers in the main Shanghai Composite index were Xiamen XGMA Machinery Co Ltd, which ended up 10.12%, followed by Shanghai Laiyifen Co Ltd , which closed 10.02% higher and Chongqing Wanli New Energy Co Ltd, which ended 10.02% firmer. The largest percentage losses in the Shanghai index were Henan Rebecca Hair Products Co Ltd, which closed down 10%, followed by Changyuan Group Ltd, which ended 9.99% lower and Guizhou Salvage Pharmaceutical Co Ltd, which closed down 9.9%.

So far this year, the Shanghai stock index is down 6.9%, the CSI300 dropped 5.1%, while China's H-share index listed in Hong Kong rose 4.6%. Shanghai stocks have declined 0.48% this month.About 11.33-billion shares were traded on the Shanghai exchange, roughly 85.7% of the market's 30-day moving average of 13.22-billion shares a day.

The volume in the previous trading session was 10.86-billion shares. As of 0702 GMT, China's A-shares were trading at a premium of 17.32% over the Hong Kong-listed H-shares. 


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