China Stocks Climb on Reopening Hopes

The Shanghai Composite rose 0.15% to around 3,216 while the Shenzhen Component gained 1% to 11,439 on Tuesday, hitting their highest levels in 11 weeks as China continued to shift away from strict Covid restrictions, sparking hopes of further economic reopening.

In the latest developments, Beijing announced that it is joining other cities in removing testing requirements to enter public venues, while Reuters reported that China could announce a further relaxation of Covid restrictions as early as Wednesday which may include 10 new measures in addition to the 20 that were issued last month.

Mainland stocks also climbed despite weak global sentiment as better-than-expected US services activity data suggested the Federal Reserve could raise interest rates for longer.

Growth-oriented consumer, healthcare and technology stocks led the advance, with strong gains from Wuliangye Yibin (4.6%), Shijiazhuang Yilin (1.9%) and East Money Information (1.1%).