China Stocks Jump on Support Pledge as Deals Spur Developers

Chinese stocks climbed the most in more than a week after the new head of the securities regulator signaled he will keep propping up the equity market and developers announced acquisitions.

The Shanghai Composite Index advanced 1.8 percent, with more than 50 shares rising for each one that fell. China Vanke Co. jumped the most in more than a year in Hong Kong after saying it plans to pay as much as 60 billion yuan ($ 9.2 billion) for a stake in Shenzhen’s urban transit company. China Overseas Land & Investment Ltd. climbed to the highest close this year after saying it’ll acquire Citic Ltd.’s property assets.

Liu Shiyu, chairman of the China Securities Regulatory Commission, said it was too early to think about the state rescue fund leaving the market, while a new registration-based system for IPOs would take time. Data over the weekend showed the nation’s industrial production and retail sales both grew less than economists forecast in the first two months of 2016, while China’s broadest measure of new credit for February came in less than half of the estimate in a Bloomberg survey.

The Shanghai Composite rose to 2,859.50 at the close. The ChiNext Index of smaller companies jumped 4.6 percent, the most in six weeks. The Hang Seng China Enterprises Index climbed 1.4 percent at 3:30 p.m. in Hong Kong, while the Hang Seng Index advanced 1 percent.

Source: Bloomberg

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U.S. Stock-Index Futures Are Little Changed Amid Earnings, Deals

U.S. stock-index futures were little changed as investors weighed quarterly results and deal activity.

S&P 500 E-mini contracts expiring in September gained less than 0.1 percent to 2,094 at 10:06 a.m. in London. The gauge rose for the first time in four days on Wednesday after better-than-estimated earnings from technology companies. Futures on the Dow Jones Industrial Average lost 4 points to 17,471 today.

Allergan Plc, Nvidia Corp. and Viacom Inc. are among 14 companies reporting today. About 85 percent of S&P 500 members have already released figures, with three-quarters beating profit estimates and half topping sales projections. Analysts now call for a 2.8 percent drop in second-quarter earnings, shallower than July 10 estimates for a 6.4 percent fall.

Investors are also watching economic reports to gauge when the Federal Reserve will increase interest rates. Data today will show initial jobless claims rose to 272,000 last week from 267,000 the previous period, according to forecasts. Friday’s report on payroll data will also be parsed for indications on the likelihood of a September rate increase.

Mondelez International Inc. climbed 8.6 percent in early New York trading after Pershing Square Capital Management said it has built a stake in the food-and-beverage company valued at about $ 5.6 billion.

Transocean Ltd. rose 5.8 percent after the world’s largest offshore rig owner posted better-than-estimated earnings amid costs cuts.

Chesapeake Energy Corp. rose 3.1 percent after saying it’s in discussions to sell more assets or stakes in oil fields as the prospect of a prolonged energy-market slump imperils cash flow.

Tesla Motors Inc. fell 6.4 percent after the electric-car maker backed off its full-year vehicle sales prediction. Keurig Green Mountain Inc. plummeted 30 percent after the maker of single-serve coffee systems cut sales and profit forecasts.

Source: Bloomberg

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