Chinese stocks are about to be circled in recent weeks

• Chinese stocks are up on Monday, leading a large rally in the region.
• The Chinese yuan is also stronger, helping to boost Asian currencies against the greenback.
• Movements follow strong inventory increases and weak US dollar in European and US trade Friday

Chinese stocks rose on Monday, leading to a general recovery in the Asian region.

Here is the performance of the main Chinese stock indexes, as well as the Chinese yuan, at 13:45 in Sydney.

Composite of Shanghai 2 792.57, 1.65%
SSE50 2,450.57, 2.00%
Shenzhen Composite 1,564.41, 1.85%
CSI300 3,434.38, 2.06%
CSI500 5.075.39, 1.58%
Hang Seng 28,821.54, 1.54%
USD / CNY 6.5973, -0.28%
USD / CNH 6.6318, -0.44%

All are traded higher, helping to boost major gains in most stocks and currencies in the region.

Here's how the main stock market indices of the region come out.

Australia ASX 200 6286.00, 0.22%
NZ NZX 50 9060.60, -0.26%
Japan TOPIX 1710.78, 1,14%
Shanghai Comp 2792.57, 1.65% [19659007] Shenzhen Comp 1564.41, 1.85%
Hang Seng HK 28751,27, 1 , 54%
South Korea KOSPI 2292.44, 0.86%
Sinagpore STI 3217.23, 0.80% [19659007] Taiwan TAIEX 10729.23, 1, 14%
PSI of the Philippines 7180.49, -0.09%
Indonesia JKSE 5758.91, 1.12%
Malaysia KLCI Index 1670.61, 0 , 41% [19659007] Thailand SET 1623.17, 0.52%
Futures S & P 500 2773.75, 0.39%

And the Asian currencies against the US dollar.

AUD / USD 0.7445, 0.43%
NZD / USD 0.6840, 0.21%
USD / JPY 110.43, -0.01%
USD / CNY 6.6218, -0.27
USD / CNH 6.6318, -0.44%
USD / HKD 7 , 8473, -0.01%
USD / KRW 1110, -0.40%
USD / SGD 1.3557, -0.10%
USD / TWD ] 30.34, -0.30%
USD / PHP 53.33, 0.04%
USD / MYR 4.035, -0.07% [19659007] USD / IDR 14335, -0.21%
USD / THB 33.09, -0.15%
USD / INR 68.59, -0.31%
Index of the US dollar 93.88, -0.16%

Strong stock market and currency fluctuations reflect those observed Friday in European and North American trade, apparently removing the possibility of escalation trade tensions between the United States and China.

On Friday, the United States and China both set tariffs on the $ 34 billion of other imports. US President Donald Trump said that the United States would apply an additional $ 16 billion to the Chinese in two weeks, as previously stated, while warning that it was considering imposing additional tariffs on $ 500 billion. US imports of Chinese, basically the markets obviously do not believe that this will occur given the magnitude of the movements observed today, even after Trump has followed through on his promise at the end of last week.

undoubtedly supported by a stronger Chinese yuan, to which investors have paid particular attention in recent months, particularly in Australia and emerging markets.

The USD / CNH – the US dollar versus the currently trades at 6.6xxx, a decline of%. China's new foreign exchange reserves rose unexpectedly in June, from $ 3 111 billion in May to $ 3,212 billion, which could explain the magnitude of this move, suggesting that the PBoC has It does not have to plunge substantially into its holdings denominated in foreign currencies to prevent the yuan from falling even further during the month.

The State Exchange Administration (SAFE), a department of the PBoC, said the increase in reserves was due to a decline in non-USD denominated currencies over the month, as well as changes in asset prices.

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