China shares rally, Asian stocks take a breather

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Asian markets looked set to rise on Tuesday as investors weighed growing expectations of an economic rebound in China and a resurgent U.S.

TOKYO/HONG KONG: The Chinese share market extended its positive run on Tuesday, in line with the mainland government's push for a stronger market, while the rest of the region turned cautious on equities.

In China, Shanghai's blue chip CSI300 index and Shenzhen shares, which had gained more than 13per cent in the past five sessions, rose a further 1.5per cent, led by rises in the tech sector. Hong Kong's Hang Seng index was down 0.86per cent despite the city's chief executive Carrie Lam saying on Tuesday market reaction had been positive to China's recently introduced national security law.

The current China rally has echoes of the past, especially during 2007 and in the buying binge that followed the crash in 2015 that was largely driven by Chinese retail investors. Still, new coronavirus cases surged in several states, forcing some restaurants and bars to close again in a setback to the budding recovery, keeping gains in risk assets in check.

 

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