Strong earnings boost stock markets

The Shanghai Composite Index (SCI) closed up 1.4% at 3,523.41 points on Tuesday, the Wall Street Journal reported. Analysts said the solid performance came as a result of strong financial results for Chinese companies, as well as the ongoing impact of market-boosting measures introduced last week, such as the reduction in stamp duty. PetroChina posted a 1.3% gain, despite announcing a 31.5% year-on-year fall in first quarter profits on Monday due to refining losses incurred as a result of China’s fuel price controls. Meanwhile, rival state oil giant Sinopec closed up 2% in Hong Kong. Analysts suggested that both increases reflected expectations of financial support from the government to cover the companies’ refining losses. Shenhua Energy’s Hong Kong-listed shares dropped 4% after Anglo American sold its 0.79% stake in the company. The Hang Seng Index closed up 0.97% at 25,914.15.