Yuan Shines in Bullish Week as China Markets Embrace Risk

(Bloomberg) -- The yuan is front and center as greater China’s markets close out a bumper week after good news on trade.

The currencies of China, Taiwan and even Hong Kong are among the top performers in the world over the past five days, with the yuan strengthening past the 7 per dollar level for the first time since August. Benchmark equity gauges are also poised for their best showings in weeks.

The bullishness comes as the U.S. and China appear to be making progress in trade talks. That good news has investors around world dumping their bearish bets, selling bonds and chasing riskier assets.

• The onshore yuan is set to strengthen for a fifth week, adding 0.7%. That’s the longest rally since February last year
• The Shanghai Composite Index rose for a third week, the longest run since March
• The Hang Seng Index climbed 2% this week, the best performance since Sept. 13
• The Hong Kong dollar has mustered a gain of 0.14% over the past five sessions, the most in eight weeks
• The Taiex, Taiwan’s stock benchmark, gained 1.6%, the most in three weeks
• The Taiwan dollar strengthened for a sixth week, adding 0.2%. The rally is the longest since 2015

To contact the reporters on this story: Cindy Wang in Taipei at hwang61@bloomberg.net;Claire Che in Beijing at yche16@bloomberg.net

To contact the editors responsible for this story: Sofia Horta e Costa at shortaecosta@bloomberg.net, Philip Glamann, Fran Wang

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