Strong jobs data helps Shanghai stocks firm

Source: Xinhua | 2019-01-25

Shanghai stocks closed higher yesterday, driven by strong jobs growth. The Shanghai Composite Index edged up 0.41 percent to close at 2,591.69 points.

Computer firms, brokerages and consumer companies were among the biggest gainers.

Urban employment grew 13.61 million in 2018, an increase of 100,000 over the same period a year earlier, the Ministry of Human Resources and Social Security said yesterday. And the registered urban unemployment rate hit its lowest level in several years by the end of 2018 — 3.8 percent compared with 3.83 percent in June last year.

“In 2018, China’s employment conditions made good progress,” ministry spokesman Lu Aihong told reporters in Beijing.

Gao Ting, head of China Strategy at UBS Securities, wrote in a research note that the firm has an overall neutral view on the stock market.

Gao suggested investors pay close attention to China-US trade talks, earnings of listed companies in the first quarter of this year and how the market starts after the Spring Festival.

“Entering 2019, the consumer sector has led the market rally due to relatively loose liquidity and supportive government policies,” Gao said.