China stocks rise on strong services data, easing Sino-U.S. tensions

** Activity in China's services sector returned to growth in September as a major COVID-19 outbreak in the eastern province of Jiangsu receded, a private-sector survey showed on Friday, offering some support to a slowing economy. ** But tourism data during the Golden Week holiday was weak, fueling hopes for more policy easing.


Reuters | Shanghai | Updated: 08-10-2021 10:51 IST | Created: 08-10-2021 10:37 IST
China stocks rise on strong services data, easing Sino-U.S. tensions
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Chinese shares rose on Friday after a week-long national holiday, helped by encouraging service sector data and easing political tensions with the United States. The CSI300 index rose 1.1% to 4,918.45 points at the end of the morning session, while the Shanghai Composite Index gained 0.3% to 3,579.96 points.

The Hang Seng index dropped 0.3% to 24,636.46 points. The Hong Kong China Enterprises Index lost 0.3% to 8,690.51. ** Activity in China's services sector returned to growth in September as a major COVID-19 outbreak in the eastern province of Jiangsu receded, a private-sector survey showed on Friday, offering some support to a slowing economy.

** But tourism data during the Golden Week holiday was weak, fueling hopes for more policy easing. ** "Sluggish golden week data bode poorly for retail sales growth in October," Nomura analysts said in a note. "We expect Beijing to ramp up its monetary and fiscal support."

** The consumer staples and the tourism shares jumped more than 4% each. ** The U.S. and China have agreed in principle for their presidents to hold a virtual meeting before year's end after high-level talks meant to improve communication between the two big powers.

** The coal sub-index slumped 5.1%, after China's top coal region has told mines to boost output immediately, the latest attempt by authorities to boost coal supply amid record-high prices and shortages of electricity. ** In Hong Kong, Li Ning Co and WuXi Biologics Inc fell 8.7% and 5.7%, respectively, dragging the Hang Seng Index lower.

** Index heavyweight Alibaba Group jumped 3.3%, lifting the city's benchmark up 61 points. ** The healthcare sub-index, the energy sub-index, the industrial sub-index, and the utility sub-index declined more than 2%.

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

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