China stocks jump after holiday break on recovery signs

China shares jumped on Friday as mainland markets reopened after an extended national holiday, with investors taking reassurance from positive economic data and indications of a rebound in tourism and consumption over the week-long holiday break.

China shares jumped on Friday as mainland markets reopened after an extended national holiday, with investors taking reassurance from positive economic data and indications of a rebound in tourism and consumption over the week-long holiday break. ** At the midday break, the Shanghai Composite index was up 1.89% at 3,278.83. ** China's blue-chip CSI300 index was up 2.32%, with the consumer staples sector adding 2.66%. ** Consumer firms were buoyed by official data showing that Chinese domestic tourism saw a robust rebound over the just-ended Golden Week holiday, encouraged by China's success in stamping out the novel coronavirus, although levels were still well short of last year. ** Adding to signs of a firming recovery in the world's second-largest economy, an industry survey showed the recovery in China's service sector activity extended into a fifth straight month in September, with hiring increasing for the second month in a row. ** "A stronger-than-expected Caixin services PMI for September ... encouraged positive sentiment around the economic outlook. A fairly benign outlook – steadily improving consumption and export growth, and a growing trade surplus – underscores the price action in China's markets today," said Stephen Innes, chief global markets strategist at Axi. ** China's yuan jumped to a 17-month high as it caught up with gains in its offshore counterpart after the eight-day national holiday. ** Chinese H-shares listed in Hong Kong rose 0.48% to 9,670.64, while the Hang Seng Index was up 0.09% at 24,216.26. ** The smaller Shenzhen index was up 3.21%, the start-up board ChiNext Composite index was higher by 3.99% and Shanghai's tech-focused STAR50 index was up 3.09%​. ** So far this year, the Shanghai stock index is up 7.5%​ and the CSI300 has risen 14.6%, while China's H-share index listed in Hong Kong is down 13.4%.