(Yicai Global) June 5 -- China's mainland stock markets got off to a strong start after US Federal Reserve Bank Chairman Jerome Powell's latest comments gave world markets a fillip.
Major US stock market indexes jumped more than 2 percent yesterday after the Fed head hinted at interest rate cuts if these became necessary to avert an economic downturn.
"We will act as appropriate to sustain the expansion, with a strong labor market and inflation near our symmetric 2 percent objective," Powell said.
The Shanghai Composite Index opened 0.72 percent higher at 2,882.94, while the Shenzhen Component Index gained 0.95 percent at 8,831.13.
The ChiNext Price Index, which tracks Shenzhen-listed growth enterprises, started the day 1.08 percentage points stronger at 1,471.95.
Markets now expect the Federal Open Market Committee to trim its benchmark rate twice before the end of the year.
Editor: Ben Armour