The rand rebounded on Friday after a two-week slide as the U.S. dollar eased in global markets and risk appetite was boosted by Chinese authorities pledging to support economic growth.

The South African rand rebounds

Coming out of a 2 week crisis

As of 2:00 p.m. GMT (4:00 p.m. local time) on Friday, the Rand was trading at 15.75 rand against the dollar, about 1.7% higher than its Thursday close.

The rand was still on track to end down almost 1% against the dollar this week after falling more than 6% last week.

The dollar fell slightly from its recent 20-year high on Friday, but was on track for its best month since 2015.

Private sector credit and surplus

South African economic data released on Friday was mostly positive, with credit to the private sector rising 5.89% year-on-year in March, higher than February’s 3.62% rise.

The trade surplus widened to 45.86 billion rand from 11.50 billion rand in February; Meanwhile, the March budget deficit widened to R37.22 billion from R28.61 billion a year earlier.

In equities, battered stocks extended their rebound on China’s promise to accelerate economic growth.

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The Johannesburg All-Share index closed 1.26% higher at 72,438 points, while the Top-40 index climbed 1.43% to 65,475 points.

A top decision-making body of the ruling Communist Party said on Friday that China would take steps to support its economy, including beleaguered internet platforms, as risks rise from its Covid-19 outbreaks and crisis. Ukrainian.

Tech stocks soar

This sent Hong Kong tech stocks soaring, with tech giant Tencent Holdings climbing 11%.

Optimism was also fueled by reports that China’s top leaders will hold a symposium early next month with a number of internet companies, which is expected to be chaired by President Xi Jinping, fueling investor hopes that the worse could have passed for an unprecedented multi-pronged event. repression that began at the end of 2020.

Johannesburg-listed shares of Prosus NV, which owns a 29% stake in Tencent, jumped 8.45%, following Tencent’s spike.

In turn, market heavyweight tech investor Naspers, which owns the majority of Prosus, climbed 7.94%.

The government’s benchmark 2030 bond was also stronger, with yield down 4.5 basis points to 9.97%.

By Nqobile Dludla and Alexander Winning.

This article first appeared on Moneyweb and has been republished with permission. Read the original article here.