SHANGHAI, Jan 5 (Reuters) - China's blue-chip index extended
gains to hit a five-and-half-year high on Tuesday, aided by
jumps in consumer stocks, as investors hoped for more measures
to spur the country's consumption amid the coronavirus outbreak.
** The blue-chip CSI300 index rose 1.9%, to
5,368.50, its highest since June 9, 2015, while the Shanghai
Composite Index gained 0.7% to 3,528.68.
** Leading the gains, the CSI300 consumer staples index
jumped 5.1%. The CSI300 healthcare index
and materials index climbed 2.2% and
** "Investors could pay attention to residents' income
recovery and measures to stimulate consumption in 2021, as
China's consumption recovery was relatively weak in 2020 amid
the coronavirus outbreak," Luo Kun, director of macro strategy
centre at Chasing Securities, noted in a report.
** Analysts and traders also said investors became more
bullish on hopes of more policy support and ample liquidity.
** "The spring rally is here now as investors expect more
policy support from Beijing and as banks usually lend more at
the start of a new year, which would mean more liquidity in the
market," said Fu Yanping, an analyst with China Galaxy
** Fu said risk appetite also got a boost as Beijing pledged
continued policy support and on the Sino-Europe investment deal.
** China last year said it would maintain support for its
economic recovery, avoiding a sudden shift in policy, to help
keep growth within a reasonable range in 2021.
** Around the region, MSCI's Asia ex-Japan stock index
was firmer by 1.12%, while Japan's Nikkei index
closed down 0.37%.
** At 07:20 GMT, the yuan was quoted at 6.46 per
U.S. dollar, 0.03% firmer than the previous close of 6.462.
(Reporting by Shanghai Newsroom; Editing by Shailesh Kuber)