China Stock Markets Rise Surge Ahead Of 5,000

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[B]China Stock Markets Rise Surge Ahead Of 5,000[/B]
Chinese stock markets rallied past the 5000 benchmark reading for the first time as speculation continues to pour into the world?s fastest growing economy. Yunnan Copper Industry Co. once again led advancers on the day, jumping to the 10 percent daily limit as Aluminum Corp. of China is set to purchase a controlling stake in the company?s parent group. Additionally boosting benchmark shares was interest in China Vanke. One of the largest national developers, China Vanke stock rose on the news that the company plans to raise as much as $1.3 billion in cash to fund further housing development as demand continues to rise. Shares rose 3.3 percent to 34 yuan. Ultimately, both advancers helped to spur a gain of 78.98 points or 1.6 percent for the CSI 300 Index. The benchmark equity index closed above at 5051.69 in the overnight. Incidentally, the day?s gains were a positive sign as investors widely shrugged off recently hiked rates, seeing further growth in the future regardless of higher costs of money.
[B]Yuan Falls On Speculation, Loses Ground Against Major Currency Rebound
[/B]Dropping another session to the US dollar, the Chinese yuan declined to trade at 7.5992 in the overnight session. The currency failed to gain any traction against other major currencies as well, including the Euro and British pound, dipping to 10.25 and 15.11 respectively against both currencies. With the light rebound in major currencies such as the Euro and pound sterling, cross market flows have widely supported yuan weakness even as the stock market rallies to record highs. Incidentally, the dip in the currency coincides with sentiment in the market that the Chinese government may begin to desire a lower marked currency. Although the sentiment has obviously been the overriding theme of the currency, it may be ever pressing as it is clear that appreciation is not expected to wane even after the most recent round of monetary tightening.
[B]China Claims US Soybean Problem, The Latest In Trade Retaliation[/B]
The world?s biggest buyer of soybeans has now said it found “substantial” quality deficiency problems with oilseed imports from the US. As such, officials have asked that the US investigate the conditions and improve upon its export procedures before any further shipments can be accepted. Yet another chapter in the back and forth between Chinese and US officials, the comments follow recent reports that cited unsafe products from China including fish and vegetables. Subsequently, US lawmakers are apparently in the midst of passing a bill that would cut access by Chinese poultry producers, likely to escalate tensions between the two countries.
[B]Regional Stocks Receive Boost From China Investment Program[/B]
Both Hong Kong and Singapore markets roared higher in the overnight as it became evident that the recent US subprime disaster was abating, for now. As a result, Singapore markets ended sharply higher by 92.84 points or 2.9 percent to close at 3,321.50. Bargain hunters were in full force as banking sector shares advanced with United Overseas Bank and DBS stock leading gainers. Hong Kong shares were led higher following a policy change by the People?s Bank of China, allowing retail investors opportunities abroad. With the closest proximity to the mainland, Hong Kong shares are surely to benefit immensely from the change. As a result, the Hang Seng index rallied for the third straight day, adding 617.53 points or 2.8 percent to close at 22,346.88.