China equities rise after property data; Huawei curbs hurt tech shares

China shares ended higher on Monday as investors took hope from data showing home prices rose in April, but renewed trade tensions between Beijing and Washington and the threat of a second wave of coronavirus infections limited gains.

** At the close, the Shanghai Composite index was up 0.24% at 2,875.42.

** The blue-chip CSI300 index was up 0.26%, with its financial sector sub-index higher by 0.06%, the consumer staples sector up 2.62%, the real estate index up 1.39% and the healthcare sub-index up 1.81%.

** Real estate shares got a boost from new data showing China's new home prices rose at a slightly faster pace in April, adding to signs of a gradual recovery in the property market. Chinese authorities have pledged to support the pandemic-hit economy.

** China reported seven new confirmed coronavirus cases for May 17, up from five a day earlier, the country's health authority said on Monday. That number included the first locally transmitted case in Shanghai since late March, while the northeastern province of Jilin reported two confirmed cases.

** The smaller Shenzhen index ended down 0.43% and the start-up board ChiNext Composite index was weaker by 0.445%.

** Improved risk appetite pushed benchmark 10-year Chinese government bond futures lower. The most-traded contract, for September delivery, fell as much as 0.60% and was last down 0.52%.

** However, highlighting continued difficulties for the economy, global demand has slumped significantly due to the virus outbreak, and trade faces "unprecedented challenges", China's commerce minister said on Monday.

** Tech shares slumped 3.30% after a report said Taiwan Semiconductor Manufacturing Co Ltd has stopped new orders from Huawei Technologies in response to U.S. moves to limit chip supplies to Huawei, which have reinflamed U.S.-China trade war concerns. TSMC said the report was "purely market rumor".

** Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.02%, while Japan's Nikkei index closed up 0.48%.

** At 07:07 GMT, the yuan was quoted at 7.1129 per U.S. dollar, 0.16% weaker than the previous close of 7.1012.

** So far this year, the Shanghai stock index is down 5.7% and the CSI300 has fallen 4.2%, while China's H-share index listed in Hong Kong is down 12.9%. Shanghai stocks have risen 0.54% this month.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)