Chinese stocks traded in New York rose, sending the benchmark index to its biggest gain in a week, after a surge in U.S. payrolls boosted the outlook for exporters in the world’s second-largest economy.
The Bloomberg China-US Equity Index (CH55BN) of the most-traded Chinese companies in the U.S. jumped 2 percent to 87.40, snapping a four-day retreat yesterday in New York. SouFun Holdings Ltd. (SFUN) added the most in two months after the company said China’s new home prices rose in June. Yanzhou Coal Mining Co. (YZC) rose to a six-week high. Online travel agency Ctrip.com International Ltd. (CTRP) advanced while competitor elong Inc. (LONG) tumbled the most in a year.
U.S. Labor Department figures yesterday showed payrolls increased 163,000 in July, exceeding the 100,000 median estimate of 89 economists surveyed by Bloomberg. Members of German Chancellor Angela Merkel’s coalition parties signaled they won’t stand in the way of European Central Bank chief Mario Draghi’s plan to buy government bonds.
“What’s driving markets today is the encouraging job data in the U.S. and continued hope in Europe that they’ll still buy bonds to save Spain and Italy,” Jeff Papp, a senior analyst at Oberweis Asset Management Inc., which manages $700 million, said yesterday by phone from Lisle, Illinois. “A better global economy will help risk assets like Chinese equities.”
The Bloomberg gauge of Chinese stocks declined 0.8 percent this week. The iShares FTSE China 25 Index Fund, the biggest Chinese exchange-traded fund in the U.S., climbed 2.5 percent yesterday to a six-week high of $34.80. The Standard & Poor’s 500 Index of the biggest U.S. shares added 1.9 percent to 1,390.99 after falling in the previous four days. The measure gained 0.4 percent in its fourth weekly increase.
Beijing-based Soufun, owner of China’s largest real estate information website, surged 9 percent to $12.68, the biggest gain since May 29.
China’s new home prices last month rose 0.3 percent from June, signaling a “turning point” for the nation’s property market, SouFun said in a statement Aug. 1, based on its survey of 100 cities. That was the second monthly gain and the biggest rise since June 2011.
American depositary receipts of Yanzhou Coal, China’s fourth-biggest producer of the fuel, jumped 6.3 percent to $16.32, the highest level since June 20. The ADRs traded 2.4 percent above its Hong Kong stock, the widest premium in a week.
Yingli Green Energy Holding Co., the world’s sixth-largest silicon-based solar module producer, rallied 8.4 percent to $1.68, the biggest advance since June 15. The gain trimmed its weekly loss to 18 percent, its fourth weekly decline.
Shanghai-based Ctrip.com, China’s largest online travel agency, climbed 3.8 percent yesterday to a one-week high of $12.97. The company has slid for eight consecutive weeks, the longest losing streak since its initial public offering in 2003.
Elong, Ctrip’s Beijing-based rival, sank 9.5 percent yesterday to $12.35, the biggest tumble in a year. The decline cut its increase this week to 1.5 percent. The company is due to report second-quarter figures on Aug. 20 after U.S. market close.
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