Chinese Shares up 1.82% on Interest Rate Cut Speculation

Chinese equities gained 1.82 percent Tuesday, rising for the third consecutive trading day, fueled by speculation that the central bank might cut interest rates as January inflation data posted the lowest growth in more than two years.

The consumer price index (CPI) went up 1 percent last month from a year earlier, while producer price index (PPI), another measure of inflation at the wholesale level, was down 3.3 percent year on year, the National Bureau of Statistics said Tuesday.

The Shanghai A-share index added 40.45 points, or 1.82 percent, to close at 2,265.16, and the Shenzhen Component Index was up 2.2 percent, or 177.87 points, to 8,265.56.

Combined turnover was 213.81 billion yuan (31.3 billion U.S. dollars), down from 235.5 billion yuan on the previous day.

Source: Xinhua