Thin Holiday Trading Sees China Stocks Extend Rally as Yen Firms on Intervention Risk

Overview

• Mainland Chinese shares rose for a seventh straight day, with aerospace and robotics leading gains as the Shanghai Composite advanced and the CSI 300 edged higher.
• The PBoC injected cash through reverse repos and reiterated a goal of keeping the yuan basically stable, supporting currency and equity sentiment.
• The yen strengthened after Japan’s finance minister said the government stands ready to counter excessive currency moves, leaving the dollar little changed overall in quiet trade.
• European indices hovered near record levels in shortened sessions, with energy and mining shares supported by record highs in precious and industrial metals and firmer oil.
• U.S. stocks were flat in a reduced session after a new S&P 500 closing high the prior day, while traders noted unconfirmed social‑media reports of a South Korean FX task force.