China stocks end higher as new energy, healthcare shares shine

The blue-chip CSI300 index rose 1.0%, to 5,094.73

China shares climbed more than 1 per cent on Tuesday, underpinned by gains in new energy and healthcare stocks, as investors cheered upbeat corporate earnings.

The blue-chip CSI300 index rose 1.0 per cent, to 5,094.73, while the Shanghai Composite Index added 0.6 to 3,456.68. Both indexes were up for a third straight session.

Leading the gains, the CSI300 new energy index and the CSI300 healthcare index rose 2.1 per cent and 1.7 per cent, respectively.

Chinese electric vehicle maker BYD Co Ltd, which is backed by billionaire Warren Buffett, on Monday reported a 162 per cent growth in 2020 net profit as it became a major mask maker during the Covid-19 pandemic.

But analysts said market sentiment remained weak and investors should not pin too much hope on the sustainability of the rally.

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For now, it's more of a rebound following the recent market corrections, Huaxi Securities analysts said in a report, adding that cyclical blue-chip firms with low valuations and good cash conditions are relatively safe for investors.

The Sino-US tensions and expectations of liquidity tightening had curbed risk appetite in the A-share market, while the US Treasury yields could rise to about 2 per cent in the future, limiting the market rebound, the brokerage added.

Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.42 per cent, while Japan's Nikkei index closed up 0.16 per cent.

At 12.51 pm, the yuan was quoted at 6.5677 per US dollar, 0.02 per cent firmer than the previous close of 6.569.