China Stocks Rise, Despite Moody's Downgrade

Markets Reuters

Reuters

(Reuters)

China stocks had their best day in four months, jumping over 4 percent, as investors piled into real estate and resources shares, encouraged by tentative signs of recovery in the property market.

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Investors shrugged off news that rating agency Moody's cut its China outlook to "negative" from "stable," as the market awaits policy cues from China's annual meeting of top legislatures that starts March 5.

The blue-chip CSI300 index rose 4.1 percent, to 3,051.33, while the Shanghai Composite Index gained 4.2 percent, to 2,849.68 points.

Stocks rose across the board, with an index tracking developers surging 5.6 percent, amid media reports of a more sure-footed recovery in the market for homes in China's first and second-tier cities following a slew of supportive measures.

Resources stocks were up 6 percent.

(Reporting by the Samuel Shen and Pete Sweeney; Editing by Shri Navaratnam)