China stocks climb to eight-month high as trade optimism grows

Chinese stocks rose to their highest level since June as signs of progress in trade talks and the breaking of a key resistance level added to confidence. Shares pared gains in afternoon trading as investors took profit.

Read: US, China said near deal that could end most US tariffs

The Shanghai Composite Index climbed 1.1% at the close, paring a gain of as much as 3.2% after smashing through the 3 000 level that had capped gains all last week. About seven stocks rose for each that fell on the gauge. The index has now climbed 23% since its January 3 low, helping add some $1.5 trillion in value to China’s stock market.

Momentum in China’s stock market hasn’t been this strong since the peak of the bubble in 2015. The Shanghai Composite’s relative-strength index is nearing the highest levels seen that year. Almost all of its 1500-odd members are above their long-term moving averages, showing the rally is also the broadest since 2015. Turnover has surged after falling to near a four-year low in December.

© 2019 Bloomberg L.P