Eustance Huang

Stocks in Asia Pacific were mixed on 7th July as the Reserve Bank of Australia kept its policy settings on hold.

Stocks in mainland China continued to lead gains among the region’s major markets for a second day after the blockbuster gains on 6th July. The Shenzhen component jumped 1.717% to close at around 13,163.98 while the Shanghai composite rose 0.37% to about 3,345.34.

On  6th July, the Shanghai composite soared nearly 6% after the state-owned China Securities Journal said investors should look forward to the “wealth effect of the capital markets” and the prospect for a “healthy bull market.”

“Frankly speaking, it’s not the first time for the official mouth(piece) to promote a stronger equity market in China. We have seen many, many rounds,” Tommy Xie, head of greater China research at Singapore’s OCBC Bank, told CNBC’s “Street Signs” on 7th July. “Most of the time, it’s quite short-lived, so I think eventually what matters is still the fundamentals.”

Still, Xie said it is “perfect timing” for China to “promote” a stronger equity market again.

“China does need a stronger equity market right now,” Xie said, as it would aid in areas such as deleveraging as well as boosting sentiment when the country feels somewhat “isolated” by some of the Western powers.

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