China stocks

(Reuters)

China Shares Climb to 10-Month High as Trump Fears Turn to Hope

Markets Reuters

China stocks rose to a fresh 10-month high on Thursday, joining a surprise turnaround in global markets in the wake of a shock win for Republican Donald Trump in the U.S. presidential election.

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The benchmark Shanghai Composite Index gained 1.4 percent to 3,171.28 points, its highest since Jan. 8, while the blue-chip CSI300 index advanced 1.1 percent to 3,390.61 points.

Trump's stunning upset roiled global markets on Wednesday, sending investors scrambling for safe-haven assets such as gold, sovereign bonds, and the Japanese yen.

Overnight, though, riskier assets staged a sharp reversal as traders reassessed the implications of a Trump presidency, with many seeing it ushering in higher economic growth.

China's markets, which are typically shielded from global market volatility by strict capital controls, have been slowly grinding higher this year as buyers have been encouraged by lower valuations and signs of stabilization in the economy.

Reversing their sharp gains the previous session, gold miners retreated as risk appetite returned.

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All major sectors gained, led by financial and industry stocks.

Chinese property developer giant Vanke traded up 1 percent, surging as much as 7.5 percent to a record high, but pared much of its gains in late afternoon trading. China Evergrande Group, a real estate conglomerate, has further raised its stake in Vanke to 8.3 percent.

(Reporting by Luoyan Liu and John Ruwitch; Editing by Shri Navaratnam)