SHANGHAI :
Chinese Mainland Stocks Opened Higher Following US Rebound
Zhang Yushuo
DATE:  Dec 27 2018
/ SOURCE:  yicai

(Yicai Global) Dec. 27 -- Chinese stock markets on the mainland absorbed some of the Christmas cheer that US investors brought to the markets after their Xmas holidays ended yesterday. 

The Shanghai Composite Index opened up 1.18 percent at 2,527.72. The Shenzhen Component Index was 1.55 percent up, at 7,402.60. The Growth Enterprise Market Index gained 1.51 percent at the open to a reading of 1,283.17. 

Equities related to mining services, natural gas, and investment led the increase. Stocks involving ultra-high voltage rose for the second consecutive day after State Grid announced on Dec. 25 that it welcomes overseas and private investment for new UHV projects.

After US investors came back to trade they salvaged what for a moment seemed like a start of a bear market for the S&P 500 Index, among other routs.

Three major US indexes advanced at least 4 percent yesterday. The Dow Jones Industrial Average ended at 22,878.45 points, 4.98 percent in the green, which was the biggest gain in a day since 2009. The S&P 500 rose 4.96 percent to 2,467.70. The Nasdaq Composite Index added 5.84 percent to finish at 6,554.36. 

Chinese companies listed in the US also rose sharply. JD.Com [NASDAQ:JD] climbed 6.83 percent to USD21.10, after announcing a stock repurchase plan regarding up to USD1 billion worth of shares to be acquired over the next 12 months. Baidu [NASDAQ: BIDU] also jumped 3.77 percent to USD163.04. Alibaba Group Holding [NYSE: BABA] rose 4.63 percent to USD138.

Major Japanese stock indexes followed the US lead and started the trading day higher. The Nikkei-225 Index opened 1.96 percent up at 19,706.19. The Tokyo Stock Price Index rose 2 percent to open at 1,460.21. 

In South Korea, the Korea Composite Stock Price Index opened with a modest 0.2 percent gain.

Bourses in Germany, France, and the UK will open today after a two-day pause for Christmas. 

Editor: Emmi Laine 

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Keywords:   Shanghai Stock Market,Shenzhen Component Index,Composite Index