Chinese stocks firm slightly as trade resumes after Golden Week break

 Chinese stocks firmed slightly on Thursday, resuming trade on a muted note after a week-long holiday as local markets digested fresh stimulus from Beijing and soaring global yields. 

The Shanghai Shenzhen CSI 300 index rose 0.3% to 4,372.06 points in morning trade, while the Shanghai Composite rose 0.26% to 3,852.0 points. 

Local markets reopened on a strong note tracking more stimulus and policy support from Beijing, after the government pledged to step up counter-cyclical policy support, and also vowed to stabilize the property market. 

Additionally, the People’s Bank of China was seen cutting interest rates and injecting more liquidity into local markets since late-September. 

Shipping stocks were among the best performers on Thursday, aided by soaring global freight rates due to disruptions stemming from the Middle East. Local banks and property stocks also advanced. 

But Chinese markets struggled to hold gains amid a storm of headwinds, especially from soaring global bond yields. Technology stocks were hit hard by rising yields, which largely overshadowed optimism over artificial intelligence. 

A rally in oil prices weighed, as markets braced for supply disruptions in the Middle East and looming disruptions in the U.S. Gulf coast. 

Losses in Hong Kong markets, which were open during a part of the Golden Week break, also provided a weak lead-in for Chinese markets. The Hang Seng fell 0.45% on Thursday and was down 2.05% since late-September. 

Locally, recent data showed Chinese consumers remained largely pessimistic, and that spending remained sluggish despite an extended Golden Week holiday. 

But travel demand improved marginally during the break, although it was unclear whether this translated into firmer growth. 

Focus now turns to the Communist Party’s fifth plenum, scheduled for October 26-29, for more cues on Beijing’s plans to shore up sluggish growth.