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China stocks end up, low inflation raises policy easing prospect
[SHANGHAI] Chinese shares ended higher for a second day on Tuesday as lower-than-expected inflation raised the chances of further monetary easing, but persistent worries over the economy kept many investors on the sidelines.
China's annual consumer inflation hit a five-year low in January while factory deflation deepened, underscoring persistent weakness in the economy.
Analysts said a weak economy would trigger more policy easing, but many investors are still waiting for the economy to bottom out.
The CSI300 index rose 61.02 points, or 1.8 per cent, to 3,406.94, while the Shanghai Composite Index which tracks all the tickers trading on the Shanghai Stock Exchange gained 46.15 points, or 1.5 per cent, to 3,141.6.
The largest percentage gainer on the Shanghai exchange on Tuesday was Chaodong Cem, which rose 10.0 per cent, while the largest percentage decliner was Nanjing Steel , down 8.9 per cent.
Among the most active stocks in Shanghai were Bank Of China , up 1.49 per cent to 4.09 yuan; China Petroleum , up 1.06 per cent to 5.74 yuan and Agriculture Bank Of China, up 1.24 per cent to 3.27 yuan.
In Shenzhen, TCL Corp, up 4.9 per cent to 3.83 yuan, BOE Technology, up 2.1 per cent to 2.86 yuan and Shenwan Hongyuan, down 1.4 per cent to 15.31 yuan, were among the most actively traded.