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China stocks inch up as investors brace for fresh trade talks


Reuters
Updated: 05-07-2019 13:33 IST
China stocks inch up as investors brace for fresh trade talks

Image Credit: Wikimedia

China shares ended a tick higher on Friday and posted weekly gains as Beijing and Washington prepared for a fresh round of talks due next week, but the rise was capped as it remained unclear whether the two nations can strike a durable trade deal.

** The Shanghai Composite index closed 0.2% firmer at 3,011.06 points, up 1.1% week-on-week. The blue-chip CSI300 index was up 0.5% on the day, and closed 1.8% higher on the week. ** CSI300's financial sector sub-index ended down 0.1%, the consumer staples sector closed 2.7% higher, the real estate index ended 1.4% weaker and the healthcare sub-index closed up 1.7%. ** The smaller Shenzhen index ended up 0.6% and the start-up board ChiNext Composite index closed almost 1% stronger. ** Top representatives of the United States and China are organizing a resumption of talks for next week to try to resolve a year-long trade war between the world's two largest economies, Trump administration officials said. ** However, White House Economic Adviser Larry Kudlow sounded unclear about the timeline for relaunching face-to-face talks, saying that these would begin "soon". ** Rating agency Moody's affirmed China's rating at A1 with a stable outlook on Thursday, citing the country's financial and policy means to contain any rise in its economy-wide leverage and mobilise resources to support its stressed public sector entities and maintain financial stability. ** Chinese banks extended less in new yuan loans in June, according to a Reuters calculation based on official data, but regulators assured that credit needs of the broader economy were met. ** "In the short-term, the A-share market may climb with (some) volatility," Galaxy Securities' analysts wrote in a report on Friday. "(Investors) should continue to pay attention to the rolling out of policies relevant to markets and changes in companies' valuations following mid-year results." ** Asian markets were hoving near two-month highs on Friday as investors braced for U.S. employment data, a key release that could stoke or temper market expectations about aggressive policy easing by the Federal Reserve. ** Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.1%, while Japan's Nikkei index closed up 0.2%. ** The largest percentage gainers in the main Shanghai Composite index were Hengtong Logistics Co Ltd, up 10.1%, followed by Harbin High-Tech Group Co Ltd and Fujian Raynen Technology Co Ltd, both up 10%. ** So far this year, the Shanghai stock index is up 20.7% and the CSI300 climbed 29.3%. Shanghai stocks rose 1.1% this month. ** About 15.68 billion shares were traded on the Shanghai exchange. The volume in the previous trading session was 19.44 billion shares. ** The Shanghai stock index is above its 50-day moving average and above its 200-day moving average.

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

COUNTRY : China