Chinese markets surged in Tuesday trade on mounting speculation that the influential MSCI benchmark index will soon add Mainland stocks, so-called A-shares, to its roster.
Shanghai’s SSE jumped 3.3 percent to close the day at 2,917, which was reportedly the index’s largest one-day gain in nearly three months. Earlier Tuesday, Goldman Sachs analysts issued a note stating that they were raising the probability for A-share inclusion to the index from its previous estimate of a 50 percent chance to a new probability of 70 percent. MSCI is due to make an announcement of its Annual Market Classification Review on June 15.
Other Asian indices posted more modest gains Tuesday. Tokyo’s Nikkei 225 rose 0.98 percent to 17,235 while Hong Kong’s Hang Seng gained 0.9 percent to end at 20,815.
Overall, it was a strong day for retail stocks. In Tokyo, Fast Retailing gained 1.7 percent to end at 29,885 yen. Shiseido rose 0.29 percent to finish at 2,925 yen. Isetan Mitsukoshi rose 2.36 percent to 1,083 yen. Onward Holdings rose 1.5 percent to 763 yen.
In Hong Kong, Chow Tai Fook rose 0.8 percent to 5.31 Hong Kong dollars. Esprit gained 2.4 percent to 6.32 Hong Kong dollars. Global Brands rose 1.3 percent to 0.790 Hong Kong dollars. I.T Limited vaulted 3.6 percent to 2.58 Hong Kong dollars.