Shanghai stocks surge

Stocks in Shanghai jumped more than 1 percent to a three-month high on Wednesday, after better-than-expected Chinese trade data offered fresh signs that the economic slowdown was bottoming. Energy and resource shares led the way as global oil prices surged to the highest level in 2016 in overnight trading, while commodity prices broadly rallied.
The Shanghai Composite Index gained 1.4 percent, to 3,066.64 points, the highest closing level since January 8. The bluechip CSI300 index rose 1.3 percent, to 3,261.38. China's March exports blew past analyst expectations, rising 11.5 pct from a year earlier, the first increase since June and the largest rise since February 2015. Imports fell by 7.6 percent from a year earlier, less than expected.
The trade data is "significantly higher than expected in March, which could continue to boost the risk sentiment in the short term," wrote Zhou Hao, economist at Commerzbank AG. Stocks rose across the board, with the energy and resource sector jumping 2.4 percent and 2.8 percent, respectively. Energy shares led the way as global oil prices surged to the highest level in 2016 in overnight trading.
"Meanwhile, the market has also priced in some upside surprise in China's Q1 GDP figures to be released this Friday morning." The upbeat trade data, which followed a moderate expansion in the service sector in March, and rises in January-February industrial profits and PMI, offered fresh signs that China's economy could be stabilising. Reflecting the improving outlook for China's economy, the International Monetary Fund (IMF) on Tuesday nudged up forecasts for China's growth this year, even as it trimmed the outlook for the world as a whole.
Stocks rose across the board in China and Hong Kong. But reflecting narrowing price differences, an index tracking price premiums of mainland shares over their Hong Kong-listed counterparts stayed on track to fall for the sixth session in a row. Energy shares were bullish on Wednesday, with an index tracking the sector in Hong Kong surging 5 percent to a five-month high, helped by jumps in oil heavyweights including Sinopec, PetroChina and CNOOC. The energy sector on the mainland was up 3.4 percent. Resources shares were also strong, inspired by a rally in global commodity prices as investors bet China's tentative economic recovery would spur demand for materials including steel, copper and aluminium.