Chinese stocks are anticipated to open strongly following the Lunar New Year break, with the buoyant travel and tourism data offering a much-needed respite to one of the world’s poorly performing major markets. Following the one-week break of trading in mainland China, it is expected that investors will take cues from the gains witnessed in the country’s offshore listed shares. Stocks in Hong Kong rallied nearly 5 per cent after reopening, while the Nasdaq Golden Dragon China Index surged 4.3 per cent, indicating potential for onshore shares to catch up. The improved spending patterns during the Lunar New Year suggest an increase in consumption despite the broader economic challenges of deflation and a property crisis. It is expected that the stream of positive data will provide at least a short-term boost to equities, aiding efforts to revive investor confidence and the broader market.
