China: Stocks rise in volatile early trade on reports of proposed financial reforms

[SHANGHAI] China's major stock indexes rose on Tuesday following reports of proposed reforms to strengthen the nation's financial regulatory system.

The CSI300 index was up 1.2 per cent at 3,229.69 points by 0142 GMT, after briefly dipping into the red, while the Shanghai Composite Index rose 0.7 per cent to 3,036.39.

The Hang Seng index in Hong Kong was up 0.6 per cent at 20,006.95.

The State Council has set up a working group, headed by deputy secretary-general Xiao Jie, a former vice finance minister and tax chief, to prepare for upgrading the cabinet's financial department to bureau level, said a source close to the country's leadership.

China's cabinet is set to take on a bigger role in overseeing financial markets, as perceived missteps by existing regulators fuel concerns globally that Beijing may be losing its grip on policy as economic growth cools to its slowest in a quarter of a century.

Asian stocks rose outside of Japan as China kept its yuan fixing little changed, while oil extended declines to a seventh day.

The MSCI's Asia Pacific excluding Japan measure gained 0.7 per cent after sinking 2 per cent last session to its lowest level in more than four years. Australia's S&P/ASX 200 Index added 0.5 per cent while the Kospi index in Seoul was up 0.3 per cent.

Japan's Nikkei fell 1.3 per cent after a market holiday on Monday, hitting a three-month low and down over 8 per cent so far this year.

BLOOMBERG