China Stocks Climb As Covid Cases Drop

The Shanghai Composite rose 0.75% to 3,059 while the Shenzhen Component added 1.8% to 11,109 on Wednesday, extending gains in the previous session, as Shanghai reported a 51% drop in new infections for Tuesday, while Beijing also reported fewer cases.

Investors also assessed higher-than-expected producer and consumer prices in China for April, driven mainly by economic disruptions due to lockdowns. The recent recovery in Chinese stocks raised hopes that markets may be bottoming after a monthlong selloff, as policy measures and vows of market stability from authorities since mid-March have so far brought only fleeting gains.

New energy stocks led the rally, with strong gains from Contemporary Amper (8.1%), BYD Company (8.3%) and Longi Green Energy (4.4%). High-growth technology and healthcare stocks also advanced, including East Money (1.7%), Hangzhou Hikvision (2.8%), China Resources Double (5.5%) and Shanghai Fosun 9.3%).