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May 11, 2015, 4:39 a.m. EDT

Chinese stocks rally as PBOC cuts interest rates again

Japanese stocks close at highest level in nearly two weeks

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By Laura He, MarketWatch


Bloomberg
Hong Kong and Shanghai stocks rise for a second session.

HONG KONG (MarketWatch) — Chinese stocks gained Monday for the second session in a row, bolstered by the third rate cut from the Chinese central bank in six months.

Meanwhile, Japanese shares posted a solid advance to reach their highest closing level in nearly two weeks.

Hong Kong’s Hang Seng Index /zigman2/quotes/210598030/delayed HK:HSI -1.09%   rose 0.5%, up for a second straight session, with the mainland-China-tracking Hang Seng China Enterprises /zigman2/quotes/210598031/delayed CN:160462 -1.13%  gaining 1%. On the mainland itself, the Shanghai Composite Index /zigman2/quotes/210598127/delayed CN:SHCOMP +0.31%  jumped 3%, adding to a 2.3% rise at the end of last week.

After China released weaker-than-expected inflation data Saturday, the People’s Bank of China on Sunday announced a quarter-percentage-point cut for both the benchmark deposit and lending rates, citing “still heavy downward pressures facing the economy.” The PBOC also lifted its ceiling on banks’ deposit rates as part of its campaign on interest-rate liberalization.

Read: China’s high-risk interest-rate cut

In Hong Kong, major Chinese banks recorded substantial gains across the board, with China Minsheng Banking Corp. /zigman2/quotes/208095167/delayed HK:1988 -1.09%   /zigman2/quotes/203910009/delayed CN:600016 -0.51%   /zigman2/quotes/200749234/delayed CMAKY -7.99%  climbing 2.2%, Bank of China Ltd. /zigman2/quotes/204682472/delayed HK:3988 -0.93%   /zigman2/quotes/201568493/delayed BACHY +0.10%   /zigman2/quotes/209359942/delayed CN:601988 -0.28%   up 1.4%, and Bank of Communications Co. /zigman2/quotes/203442771/delayed HK:3328 -0.58%   /zigman2/quotes/208048873/delayed BKFCF -10.96%   /zigman2/quotes/207155262/delayed CN:601328 +0.37%   higher by 1.3%.

In Shanghai, top gainers among banking shares included China Citic Bank Corporation Ltd. /zigman2/quotes/206411273/delayed CN:601998 -0.35%   /zigman2/quotes/205809997/delayed HK:998 -0.71% , up 2.4%, and Bank of China Ltd., which added 1.6%.

Property stocks also mostly advanced. In Hong Kong, index component China Overseas Land & Investment Ltd. /zigman2/quotes/205731176/delayed HK:688 -2.34%   /zigman2/quotes/210412581/delayed CAOVF +1.14%   was up 4.1%, and China Resources Land Ltd. /zigman2/quotes/202417326/delayed HK:1109 -1.26%   /zigman2/quotes/201656413/delayed CRBJF +5.00%   — also a Hang Seng Index constituent — climbed 1.9%. In the property sector in Shanghai, Huayuan Property Co. Ltd. /zigman2/quotes/204155155/delayed CN:600743 -0.44%   soared limit-up by 10%, and China Calxon Group Co., Ltd. /zigman2/quotes/205767260/delayed CN:000918 -0.97%  popped 4.4% higher.

Meanwhile, tech stocks in Hong Kong extended a previous rally fueled by a Thursday statement by China’s State Council (China’s cabinet) that the nation will “strive to develop the e-commerce industry and cultivate a new impetus to power the economic growth.” A Monday report by the state-run China Fund newspaper that Chinese mutual funds have been doing close research on Internet-finance-related companies may also have helped lift the sector.

Index heavyweight and Chinese online major Tencent Holdings Ltd. /zigman2/quotes/204605823/delayed HK:700 -2.20%   /zigman2/quotes/207908563/delayed TCEHY -1.51%  rose 3% ahead of the release of its earnings results on Wednesday. Online-game developer NetDragon Websoft Inc. /zigman2/quotes/208746366/delayed HK:777 -2.00% soared 11%, and rival Baioo Family Interactive /zigman2/quotes/210039816/delayed HK:2100 +3.51%  surged 9.7%. Software developer Kingdee International Software Group /zigman2/quotes/202787359/delayed HK:268 -0.19%   /zigman2/quotes/210110520/delayed KGDEF +4.35%  added 6.3%, and Kingsoft Corp. /zigman2/quotes/208824086/delayed HK:3888 -0.56%   /zigman2/quotes/200487124/delayed KSFTF -2.76%  was up 6.1%.

Other Asian markets were mostly higher. Japan’s Nikkei Average /zigman2/quotes/210597971/delayed JP:NIK -0.39%  improved by 1.3% to 19,620.91, its best close since late April. The Topix /zigman2/quotes/210598092/delayed JP:180460 -0.03%   moved up 0.7%.

The yen /zigman2/quotes/210561789/realtime/sampled USDJPY -0.4906%  weakened slightly, with the dollar buying ¥119.98, compared with ¥119.84 late Friday in New York.

Seoul’s Kospi Composite Index /zigman2/quotes/210598069/delayed KR:180721 -1.49%  tacked on 0.6%, while Sydney’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO -0.33%  edged 0.2% lower.

/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
27,308.81
-300.35 -1.09%
Volume: 1.77M
Feb. 21, 2020 4:08p
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/zigman2/quotes/210598031/delayed
CN : Hong Kong Exchange
10,790.84
-123.13 -1.13%
Volume: 0.00
Feb. 21, 2020 4:08p
loading...
/zigman2/quotes/210598127/delayed
CN : China: Shanghai
3,039.67
+9.52 +0.31%
Volume: 36.46B
Feb. 21, 2020 3:01p
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/zigman2/quotes/208095167/delayed
HK : Hong Kong
HK$ 5.46
-0.06 -1.09%
Volume: 19.29M
Feb. 21, 2020 4:08p
P/E Ratio
3.94
Dividend Yield
7.21%
Market Cap
HK$241.68 billion
Rev. per Employee
HK$6.25M
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/zigman2/quotes/203910009/delayed
CN : China: Shanghai
¥ 5.91
-0.03 -0.51%
Volume: 95.58M
Feb. 21, 2020 3:00p
P/E Ratio
4.87
Dividend Yield
5.84%
Market Cap
¥260.07 billion
Rev. per Employee
¥5.19M
loading...
/zigman2/quotes/200749234/delayed
US : U.S.: OTC
$ 6.79
-0.59 -7.99%
Volume: 22.00
Feb. 21, 2020 5:20p
P/E Ratio
38.36
Dividend Yield
6.01%
Market Cap
$59.01 billion
Rev. per Employee
$798,641
loading...
/zigman2/quotes/204682472/delayed
HK : Hong Kong
HK$ 3.19
-0.03 -0.93%
Volume: 260.67M
Feb. 21, 2020 4:08p
P/E Ratio
4.48
Dividend Yield
6.61%
Market Cap
HK$947.86 billion
Rev. per Employee
HK$3.13M
loading...
/zigman2/quotes/201568493/delayed
US : U.S.: OTC
$ 10.19
+0.01 +0.10%
Volume: 59,584
Feb. 21, 2020 3:46p
P/E Ratio
4.57
Dividend Yield
5.45%
Market Cap
$34.60 billion
Rev. per Employee
$399,878
loading...
/zigman2/quotes/209359942/delayed
CN : China: Shanghai
¥ 3.62
-0.01 -0.28%
Volume: 79.94M
Feb. 21, 2020 3:00p
P/E Ratio
5.72
Dividend Yield
5.08%
Market Cap
¥1068.56 billion
Rev. per Employee
¥2.61M
loading...
/zigman2/quotes/203442771/delayed
HK : Hong Kong
HK$ 5.17
-0.03 -0.58%
Volume: 21.14M
Feb. 21, 2020 4:08p
P/E Ratio
4.40
Dividend Yield
6.59%
Market Cap
HK$386.17 billion
Rev. per Employee
HK$5.47M
loading...
/zigman2/quotes/208048873/delayed
US : U.S.: OTC
$ 0.65
-0.08 -10.96%
Volume: 50.00
Feb. 20, 2020 5:20p
P/E Ratio
4.33
Dividend Yield
N/A
Market Cap
$48.27 billion
Rev. per Employee
$697,896
loading...
/zigman2/quotes/207155262/delayed
CN : China: Shanghai
¥ 5.37
+0.02 +0.37%
Volume: 79.39M
Feb. 21, 2020 3:00p
P/E Ratio
5.21
Dividend Yield
5.59%
Market Cap
¥397.31 billion
Rev. per Employee
¥4.56M
loading...
/zigman2/quotes/206411273/delayed
CN : China: Shanghai
¥ 5.69
-0.02 -0.35%
Volume: 24.93M
Feb. 21, 2020 3:00p
P/E Ratio
7.31
Dividend Yield
4.04%
Market Cap
¥279.42 billion
Rev. per Employee
¥5.22M
loading...
/zigman2/quotes/205809997/delayed
HK : Hong Kong
HK$ 4.19
-0.03 -0.71%
Volume: 29.40M
Feb. 21, 2020 4:08p
P/E Ratio
4.22
Dividend Yield
6.25%
Market Cap
HK$206.51 billion
Rev. per Employee
HK$6.26M
loading...
/zigman2/quotes/205731176/delayed
HK : Hong Kong
HK$ 27.10
-0.65 -2.34%
Volume: 19.31M
Feb. 21, 2020 4:08p
P/E Ratio
6.37
Dividend Yield
3.51%
Market Cap
HK$304.04 billion
Rev. per Employee
HK$30.79M
loading...
/zigman2/quotes/210412581/delayed
US : U.S.: OTC
$ 3.55
+0.04 +1.14%
Volume: 0.00
Feb. 13, 2020 1:40p
P/E Ratio
6.54
Dividend Yield
N/A
Market Cap
$38.84 billion
Rev. per Employee
$3.93M
loading...
/zigman2/quotes/202417326/delayed
HK : Hong Kong
HK$ 35.15
-0.45 -1.26%
Volume: 11.74M
Feb. 21, 2020 4:08p
P/E Ratio
7.55
Dividend Yield
3.57%
Market Cap
HK$253.86 billion
Rev. per Employee
HK$3.68M
loading...
/zigman2/quotes/201656413/delayed
US : U.S.: OTC
$ 4.41
+0.21 +5.00%
Volume: 4,000
Feb. 20, 2020 5:20p
P/E Ratio
7.42
Dividend Yield
N/A
Market Cap
$31.45 billion
Rev. per Employee
$470,019
loading...
/zigman2/quotes/204155155/delayed
CN : China: Shanghai
¥ 2.25
-0.01 -0.44%
Volume: 7.39M
Feb. 21, 2020 3:00p
P/E Ratio
6.97
Dividend Yield
5.33%
Market Cap
¥5.30 billion
Rev. per Employee
¥10.21M
loading...
/zigman2/quotes/205767260/delayed
CN : China: Shenzhen
¥ 5.09
-0.05 -0.97%
Volume: 10.40M
Feb. 21, 2020 3:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
¥9.27 billion
Rev. per Employee
¥681,339
loading...
/zigman2/quotes/204605823/delayed
HK : Hong Kong
HK$ 401.00
-9.00 -2.20%
Volume: 17.45M
Feb. 21, 2020 4:08p
P/E Ratio
39.09
Dividend Yield
0.25%
Market Cap
HK$3885.42 billion
Rev. per Employee
HK$8.27M
loading...
/zigman2/quotes/207908563/delayed
US : U.S.: OTC
$ 51.47
-0.79 -1.51%
Volume: 4.10M
Feb. 21, 2020 4:00p
P/E Ratio
39.32
Dividend Yield
0.22%
Market Cap
$499.19 billion
Rev. per Employee
$1.05M
loading...
/zigman2/quotes/208746366/delayed
HK : Hong Kong
HK$ 22.05
-0.45 -2.00%
Volume: 4.47M
Feb. 21, 2020 4:08p
P/E Ratio
13.30
Dividend Yield
1.36%
Market Cap
HK$11.92 billion
Rev. per Employee
HK$2.68M
loading...
/zigman2/quotes/210039816/delayed
HK : Hong Kong
HK$ 1.18
+0.04 +3.51%
Volume: 18.83M
Feb. 21, 2020 4:08p
P/E Ratio
85.51
Dividend Yield
N/A
Market Cap
HK$3.15 billion
Rev. per Employee
HK$516,459
loading...
/zigman2/quotes/202787359/delayed
HK : Hong Kong
HK$ 10.58
-0.02 -0.19%
Volume: 10.77M
Feb. 21, 2020 4:08p
P/E Ratio
88.46
Dividend Yield
0.11%
Market Cap
HK$34.10 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/210110520/delayed
US : U.S.: OTC
$ 1.20
+0.05 +4.35%
Volume: 3,677
Feb. 21, 2020 5:20p
P/E Ratio
78.43
Dividend Yield
N/A
Market Cap
$3.86 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/208824086/delayed
HK : Hong Kong
HK$ 26.85
-0.15 -0.56%
Volume: 21.57M
Feb. 21, 2020 4:08p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
HK$36.87 billion
Rev. per Employee
HK$1.27M
loading...
/zigman2/quotes/200487124/delayed
US : U.S.: OTC
$ 3.52
-0.10 -2.76%
Volume: 8,000
Feb. 19, 2020 5:20p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$4.73 billion
Rev. per Employee
$161,515
loading...
/zigman2/quotes/210597971/delayed
JP : Nikkei
23,386.74
-92.41 -0.39%
Volume: 0.00
Feb. 21, 2020 3:15p
loading...
/zigman2/quotes/210598092/delayed
JP : Tokyo Exchange (TOPIX)
1,674.00
-0.48 -0.03%
Volume: 0.00
Feb. 21, 2020 3:00p
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/zigman2/quotes/210561789/realtime/sampled
US : Tullett Prebon
111.5550
-0.5500 -0.4906%
Volume: 0.0000
Feb. 21, 2020 4:59p
loading...
/zigman2/quotes/210598069/delayed
KR : Korea Exchange
2,162.84
-32.66 -1.49%
Volume: 635,474
Feb. 21, 2020 3:33p
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/zigman2/quotes/210598100/delayed
AU : S&P ASX
7,139.00
-23.50 -0.33%
Volume: 1.07M
Feb. 21, 2020 5:17p
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Laura He is a MarketWatch reporter based in Hong Kong. Follow Laura on Twitter at: @lauraliuhe.

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