Home Investment China stocks surge more than 4% extending Friday’s rally

China stocks surge more than 4% extending Friday’s rally

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Asia Pacific markets mostly rose on Monday as major Chinese indexes leaped more than 4 percent.

The Shanghai composite added 4.09 percent to close at around 2,654.88. Earlier in the day, the index saw gains of more than 4.5 percent.

Elsewhere, the Shenzhen composite gained 4.899 percent to close at about 1,325.73.

The moves followed Friday’s rally in Chinese stocks as authorities took steps to support the market after the release of weaker-than-expected GDP data.

One market observer, however, voiced skepticism over the recent rally in mainland Chinese stocks.

“Eventually, at the end of the day, fundamentals will still rule,” Vasu Menon, vice president of group wealth management at OCBC Bank told CNBC’s “Street Signs” on Monday morning.

Menon pointed out there were lingering concerns over Beijing’s trade war with Washington. “It doesn’t look like it’s going to end anytime soon,” he said.

“You see a rebound today, but does it mean that the markets have turned a corner and you know, will hit higher? I’m not sure. I don’t think so,” Menon said.

In Japan, the Nikkei 225 erased earlier losses to close 0.37 percent higher at 22,614.82 while the Topix index gained 0.15 percent to end the trading day at 1,695.31. South Korea’s Kospi gained 0.25 percent to close at 2,161.71. In Hong Kong, the Hang Seng index rose 2.22 percent in afternoon trade.

SOURCE: CNBC.com

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