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Stocks sustain growth on improved global outlook
By Hu Xiaocen |
February 6, 2012, Monday
|
Online Edition
Online Edition
SHANGHAI stocks edged up for the third consecutive trading day on an improved outlook for the US economy and optimistic forecasts for eurozone recovery.
The Shanghai Composite index gained 0.03 percent to 2,331.14 points at the close of trading, the highest level since December 7. Turnover stood at 67.3 billion yuan (US$10.7 billion).
The US economy added 243,000 jobs in January, the biggest gain in nine months, far exceeding an optimistic forecast by a Bloomberg survey. The nation's unemployment rate also dropped to 8.3 percent from December's 8.5 percent, according to a US Labor Department report last week.
Fears of a global recession eased as world economies are showing further evidence of resilience.
Bo Duoer, chief strategist at BlackRock Asset Management, recently released predictions for global growth in 2012. He believed that Europe today may be in recession, but added that the European debt crisis may still ease. The US stock market is expected to outperform other developed markets, while emerging markets may gain the most this year.
Hu Xiaohui, analyst at Datong Securities believes that the stock market will continue to rebound, as the period of policy vacuum will last until March, providing time for the market to adjust. In addition, some major projects will start on the second year of the China's 12th Five-Year Plan, giving the index a continuous upward momentum.
"Stricter monetary policy is very unlikely. Credit will be further loosened," he said.
Property developers retreated after China Vanke Co, the nation's biggest listed developer, posted a 39 percent drop in its January sales from a year earlier. Vanke plunged 2.18 percent to 7.62 yuan. Poly Real Estate slid 2.15 percent to 10.45 yuan.
The Shanghai Composite index gained 0.03 percent to 2,331.14 points at the close of trading, the highest level since December 7. Turnover stood at 67.3 billion yuan (US$10.7 billion).
The US economy added 243,000 jobs in January, the biggest gain in nine months, far exceeding an optimistic forecast by a Bloomberg survey. The nation's unemployment rate also dropped to 8.3 percent from December's 8.5 percent, according to a US Labor Department report last week.
Fears of a global recession eased as world economies are showing further evidence of resilience.
Bo Duoer, chief strategist at BlackRock Asset Management, recently released predictions for global growth in 2012. He believed that Europe today may be in recession, but added that the European debt crisis may still ease. The US stock market is expected to outperform other developed markets, while emerging markets may gain the most this year.
Hu Xiaohui, analyst at Datong Securities believes that the stock market will continue to rebound, as the period of policy vacuum will last until March, providing time for the market to adjust. In addition, some major projects will start on the second year of the China's 12th Five-Year Plan, giving the index a continuous upward momentum.
"Stricter monetary policy is very unlikely. Credit will be further loosened," he said.
Property developers retreated after China Vanke Co, the nation's biggest listed developer, posted a 39 percent drop in its January sales from a year earlier. Vanke plunged 2.18 percent to 7.62 yuan. Poly Real Estate slid 2.15 percent to 10.45 yuan.
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