Shanghai Composite Index: China shares end at 3-month high as inflation concerns ease; Shanghai Composite rises 0.3% at close

SHANGHAI: China stocks notched their highest close in three months on Wednesday as easing inflation worries and a strong yuan lifted risk appetite, although profit-taking pressured agricultural and electric-vehicle firms.

Rising for the third straight session, the Shanghai Composite index ended up 0.34 per cent at 3,593.36, the highest closing level since February 25. The blue-chip CSI300 index was up 0.04 per cent.

Leading gains, the real estate index rose 1.49 per cent and the financial sector gained 0.52 per cent. China Fortune Land Development Co advanced 4.3 per cent while China Industrial Securities Co jumped by the daily limit of 10 per cent.

The agriculture sector and the subindex tracking new-energy vehicle firms both lost 0.6 per cent. Battery maker EVE Energy Co slumped 4.1 per cent.

The smaller Shenzhen index ended down 0.06 per cent and the start-up board ChiNext Composite index was 0.945 per cent weaker.

China’s yuan extended gains to a near three-year high, helping ease the pressure from rising prices of imports, analysts said.

U.S. Federal Reserve officials reaffirmed a dovish monetary policy stance on Tuesday, boosting sentiment in Asian markets.

China’s market regulator has begun an investigation into suspected anti-competitive practices by KE Holdings, the country’s biggest housing broker whose top backer is Tencent Holdings, two people who know of the matter said.

Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.4 per cent, while Japan’s Nikkei index closed up 0.31 per cent. At 0714 GMT, the yuan was quoted at 6.3958 per U.S. dollar, 0.25 per cent firmer than the previous close of 6.412.