Chinese stocks climb higher, led by appliance makers

China’s A-share markets traded higher on Friday, with broad-based gains led by home appliance manufacturers.

The Shanghai Composite Index climbed by 0.63 percent or 20.60 points to close at 3,270.80.

The benchmark index surged shortly after opening, boosted by financials. After an early reversal, the gains continued thanks to advances in consumption stocks and cyclical shares.

The smaller Shenzhen Component Index added 1.27 percent to end at 10,418.24 points, while the ChiNext Index was up 0.66 percent to finish at 1,715.80.

Home appliances, mining and communications sectors were among the leading gainers, with shares of Gree Electric Appliances Inc jumping by 9.24 percent to close at 65 yuan (US$9.69) a share.

The rally followed overnight gains from Wall Street. On the back of better-than-expected US corporate earnings and economic data, the Dow Jones Industrial Average rose more than 100 points to 26,559.54.

Central China Securities noted that with the release of annual and quarterly reports, blue-chips with low valuations are expected to attract more attention from investors.

As the macro economy is also showing signs of stabilization and recovery, investors will probably shift their focus to cyclical industries, the broker said.