China's blue-chips suffer worst week in three months

China stocks fell on Friday to end the week lower, with the country's blue-chip index posting its biggest weekly decline in more than three months, amid uncertainty around the Sino-U.S. trade deal while investors sought more clues on Beijing's policy support in the midst of a slowing economy. ** The blue-chip CSI300 index fell 0.7%, to 3,877.09, while the Shanghai Composite Index ended down 0.6% at 2,891.34 points.

** For the week, CSI300 was down 2.4%, its biggest weekly loss since the week of Aug. 9, while SSEC shed 2.5%, worst since the week of Sept 27. ** The latest data showed China's factory output growth slowed significantly more than expected in October, as weakness in global and domestic demand and the drawn-out trade war weighed on broad segments of the world's second-largest economy.

** The disappointing numbers show China off to a rough start in the final three months of 2019 and will bolster calls for Beijing to roll out fresh support after third-quarter growth slowed to its weakest in almost three decades, with factory production bruised by the trade war. ** China's strongest consumer inflation in nearly eight years won't deter the central bank from cutting a key interest rate next week, as slowing economic growth is a bigger concern for policymakers, traders and fund managers said.

** There have also been worries about the Sino-U.S. trade relations in absence of concrete details of a proposed deal. ** China and the United States are holding "in-depth" discussions on a first phase trade agreement, and canceling tariffs is an important condition to reaching a deal, the Chinese commerce ministry said on Thursday.

** White House economic adviser Larry Kudlow said both countries are getting close to a deal, citing what he called very constructive talks with Beijing. ** Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.59%, while Japan's Nikkei index closed up 0.7%.

** At 07:09 GMT, the yuan was quoted at 7.0102 per U.S. dollar, 0.14% firmer than the previous close of 7.02. ** So far this year, the Shanghai stock index is up 15.9% and the CSI300 has risen 28.8%, while China's H-share index listed in Hong Kong is up 3.1%. Shanghai stocks have declined by 1.29% this month.

** As of 07:10 GMT, China's A-shares were trading at a premium of 29.07% over the Hong Kong-listed H-shares.

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