Chinese Shares Advance on Stimulus Bets; Oil Drops, Dollar Gains

---

Chinese shares jumped amid speculation the government will do more to support growth and as more mainland funds were allowed to trade Hong Kong equities. Oil slid a second day and the dollar was stronger against most peers.

The Hang Seng China Enterprises Index surged 2.8 percent by 11:03 a.m. in Tokyo, and the Hang Seng Index advanced 1.2 percent as regulators expanded access to the city’s exchange link with Shanghai. MSCI Asia Pacific Index was little changed with Standard & Poor’s 500 Index futures. The greenback climbed 0.1 percent against the euro and the Australian and New Zealand currencies weakened 0.4 percent. U.S. crude oil fell 1 percent, extending Friday’s 5 percent rout.

China’s central bank chief said that the nation’s growth rate has tumbled “a bit” too much and that policy makers have scope to respond, underscoring forecasts for further monetary easing in the world’s second-largest economy. Talks on Iran’s nuclear program resume Monday amid speculation that an accord to ease sanctions could mean a resumption of oil shipments, further swelling global supply. Reports on personal spending and income are due in the U.S.

“Confirmation that further stimulus in China is likely might have some positive announcement impact and help calm market nerves but in the long run is likely to be outweighed by concerns that growth in China’s economy continues to soften,” Ric Spooner, a chief market analyst at CMC Markets in Sydney, wrote in an e-mail to clients.

China has room to act with both interest rates and “quantitative” measures, People’s Bank of China Governor Zhou Xiaochuan said in remarks at the Boao Forum for Asia, an annual conference on the southern Chinese island of Hainan.

Source : Bloomberg

Hong Kong Stocks Open 0.99 % Higher

---

Hong Kong shares opened 0.99 percent higher Monday after gains on Wall Street that snapped a four-day losing streak.

The benchmark Hang Seng Index added 241.26 points to 24,727.46.

In mainland China the benchmark Shanghai Composite Index gained 0.67 percent, or 24.83 points, to 3,715.93.

The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 0.29 percent, or 5.61 points, to 1,941.20.

Source : AFP

China Stock-Index Futures Rise on PBOC Easing Signal, Silk Road

---

China’s stock-index futures rose after President Xi Jinping announced details of his Silk Road plan, and the central bank said the nation’s growth rate has tumbled “a bit” too much and policy makers have scope to respond.

Futures on the CSI 300 Index expiring in April, the most active contract, advanced 1.2 percent to 4,013.40 as of 9:25 a.m. local time. The Shanghai Composite Index added 0.2 percent to 3,691.10 on March 27, taking its quarterly gain to 15 percent. The CSI 300 Index rose 0.6 percent. Hong Kong’s Hang Seng China Enterprises Index slipped for a fourth day, losing 0.2 percent, while the Hang Seng Index was little changed. The Bloomberg China-US Equity Index jumped 1 percent.

Zhou’s remarks follow signs that China slowed further in the first quarter, after recording its weakest expansion since 1990 last year. The economy expanded 6.28 percent in February from a year earlier, Bloomberg’s monthly growth tracker shows, and the government’s official factory reading due Wednesday likely worsened, according to economists surveyed by Bloomberg.

Source : Bloomberg

Dollar Gains Amid Higher Yields as Traders Look Past Fed Views

---

The dollar’s fighting its way back after the Federal Reserve sent it reeling last week with cuts to its projections for interest rates, inflation and growth.

The greenback gained the most in a week as Treasury yields rose from six-week lows after jobless claims dropped to the lowest level since mid-February. The yen advanced to the strongest level in more than a month as Saudi Arabia and its allies bombed targets in Yemen, increasing demand for haven assets. The Canadian dollar led gains as the price of crude oil rose on concern supplies could be interrupted.

The Bloomberg Dollar Spot Index, which tracks the U.S. currency against 10 major peers, appreciated 0.3 percent to 1,189.11 as of 4:18 p.m. New York time after sliding as much as 0.6 percent.

The yen gained 0.3 percent to 119.17 per dollar and reached 118.33, the strongest level since Feb. 20. The Canadian dollar gained 0.4 percent to C$1.2473 versus the greenback.

Benchmark U.S. 10-year Treasury yields added seven basis points, or 0.07 percentage point, to 1.99 percent, according to Bloomberg Bond Trader data. They touched 1.85 percent Wednesday, the lowest level since Feb. 6.

Source : Bloomberg