China shares close higher on hopes of outbreak control, US-China talks

BEIJING/SHANGHAI: China shares ended higher on Tuesday, with sentiment lifted by confidence in Beijing's capability to control the latest resurgence of coronavirus cases and expectations of bilateral Sino-U.S. talks.

At the close, the Shanghai Composite index was up 1.44 per cent at 2,931.75, posting its biggest daily gain in more than two weeks.

The blue-chip CSI300 index was up 1.51 per cent, with its financial sector sub-index higher by 1.04 per cent. The consumer staples sector rose 1.03 per cent, the real estate index was up 1.22 per cent and the healthcare sub-index gained 2.43 per cent.

The smaller Shenzhen index ended up 1.77 per cent and the start-up board ChiNext Composite index gained 1.84 per cent.

After weeks with almost no new coronavirus infections, Beijing has recorded some 106 new cases since June 11.

But investors showed confidence this time that Beijing is capable of putting the latest resurgence under control, as the government is now more experienced in handling the outbreak, said Zhang Qi, an analyst at Haitong Securities.

Also lifting sentiment, Mainland China reported 40 new confirmed coronavirus cases for June 15, down from 49 a day earlier, according to the National Health Commission.

** The A-shares were also helped by reports on expected meetings between the U.S. Secretary of State Mike Pompeo and China's state councillor Yang Jiechi this week to discuss bilateral ties that have soured deeply since the start of the year.

Around the region, MSCI's Asia ex-Japan stock index was firmer by 2.78 per cent, while Japan's Nikkei index closed up 4.88 per cent.

At 0701 GMT, the yuan was quoted at 7.0771 per U.S. dollar, 0.16 per cent firmer than the previous close of 7.0888.