China stocks tepid as COVID, geopolitical tensions weigh

China stocks flitted in a tight range on Monday, with the energy sector being partially countered by losses in consumer shares, as domestic COVID-19 outbreaks and tensions with the United States kept market sentiment fragile. The blue-chip CSI300 index fell 0.2% to 4,148.07, while the Shanghai Composite Index gained 0.3% to 3,236.93 points.

China stocks flitted in a tight range on Monday, with the energy sector being partially countered by losses in consumer shares, as domestic COVID-19 outbreaks and tensions with the United States kept market sentiment fragile.

The blue-chip CSI300 index fell 0.2% to 4,148.07, while the Shanghai Composite Index gained 0.3% to 3,236.93 points. The Hang Seng index fell 0.8% to 20,045.77, while the China Enterprises Index lost 1.2% to 6,821.52.

China's Hainan, an island province dependent on tourism, locked down more areas on Monday, as it battles its worst COVID-19 outbreak after seeing very few cases over the past two years.

Stocks in tourism, transport, and consumer staples retreated, with China Tourism Group Duty-Free Corp slumping 4.7%, as Sanya began closing duty-free malls on Aug. 5.

Defence shares jumped more than 2%.

China's defence ministry on Monday defended its shelving of military talks with the United States in protest against House Speaker Nancy Pelosi's visit to Taipei last week, warning that Washington must bear "serious consequences."

Energy companies rose 2.8%, with coal miners up 3.7%.

China's export growth unexpectedly picked up speed in July, offering an encouraging boost to the economy, but weakening global demand could start to drag on shipments in the coming months.

China's property developers Greenland Holdings Corp said a unit has secured loans from state-owned shareholders and the parent of Yango Group signed a debt relief agreement with a state-backed bad loan company.

Shares in Yango jumped 10% while Greenland gained 2.3%, but the property index dropped 1.1%.

Hong Kong government said on Monday it would shorten the COVID-19 hotel quarantine period for all arrivals to three days from seven, sending shares in flagship carrier Cathay Pacific Airways up 1.4%.

Hong Kong stocks tracked other Asian markets lower after a stunning U.S. payrolls report bolstered the case for more super-sized rate hikes.

The Hang Seng Tech Index dropped 1.8%, with e-commerce giant Alibaba Group down 4.4%.

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