The Shanghai Composite index is now up by 1.6% on the day
Chinese stocks are literally surging into the close as the Shanghai Composite index just jumped sharply from around just under 1% gains in the past hour to now being close to 1.7% gains on the day. Trading volume is also noticeably high and that's a vote of confidence by Chinese investors ahead of the conclusion of US-China trade talks later today.
The more significant thing about the rally here is that the Shanghai Composite looks set to close above the 200-day moving average (blue line) for the first time since March last year. It's been a steady grind lower for Chinese equities in 2018 but it is finally showing signs of life again as valuations turn cheaper and more attractive alongside local authorities' pledge to keep economic growth stable.
