Chinese stocks closed higher Monday on hopes of added stimulus from Beijing in a bid to offset the effect of US tariffs.
The Shanghai Composite Index, the main gauge of Chinese stocks, increased 0.45% or by 14.70 points to 3,291.43. The Shenzhen Component Index jumped 1.27% or by 123.88 points to 9,905.53.
The increase in both indices is the highest in five days.
"We expect the government to accelerate bond issuance and the spending of proceeds in the coming months," the South China Morning Post reported Monday, citing Goldman Sachs economist Andrew Tilton.
The Commerce Ministry also said it would assist exporters as they cope with "external shocks," the report said.
Beijing kept its loan prime rates unchanged, with the one-year loan prime rate at 3.1% and the five-year LPR at 3.6%.
The steady LPR indicates Chinese policymakers are in wait-and-see mode, Reuters reported, citing Xing Zhaopeng, senior China strategist at ANZ
Meanwhile, foreign direct investment in actual use increased 13.2% in March, while inflow fell 10.8% to 269.2 billion yuan in the first quarter, the commerce ministry said.
Fiscal revenue also slipped 1.1% in Q1 to 6.019 trillion yuan.
In corporate news, Contemporary Amperex Technology (SHE:300750) closed 3% higher following the launch of the second generation of its Shenxing fast-charging battery, Reuters reported Monday.
Hengrui Pharmaceuticals (SHA:600276)closed 2% higher after obtaining clinical trial approval for its HRS-9813 drug for lung function and lung fibrosis.
