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China: Shanghai shares open up 1.35 per cent

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[SHANGHAI] Chinese shares opened 1.35 per cent higher on Friday, extending a rally after an interest rate cut earlier in the week and rises on global exchanges following days of turmoil.

The benchmark Shanghai Composite Index rose 41.67 points to 3,125.26. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 1.38 per cent, or 24.23 points, to 1,776.44.

Global markets were roiled earlier this week on the potential impact of slowing growth in the Chinese economy, the world's second-largest.

Authorities on Tuesday cut interest rates for the fifth time since November and reduced the amount of money banks must keep on hand in a bid to stimulate expansion, prompting widespread rallies, even though analysts say more action is needed.

"The short-term bottom is clear now," Zhang Gang, an analyst with Central China Securities, told AFP.

"It will further rebound as the US and European markets rise on reduced expectation of an interest rate hike and a better-than-expected second-quarter GDP performance in US."

AFP