China and Hong Kong Stocks Rise Amid Dollar Weakness Awaiting U.S. Inflation Data

China and Hong Kong stocks saw gains on Friday, following broader Asian market trends as the dollar weakened overnight. Investors are awaiting a key U.S. inflation reading to gauge interest rate directions. Despite weaker manufacturing data from China, markets were buoyed by the possibility of new stimulus measures.


Reuters | Shanghai | Updated: 31-05-2024 10:18 IST | Created: 31-05-2024 10:18 IST
China and Hong Kong Stocks Rise Amid Dollar Weakness Awaiting U.S. Inflation Data
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China and Hong Kong stocks rose on Friday, tracking gains in broader Asia after the dollar weakened overnight, while market participants awaited a key inflation reading from the United States later in the day to gauge the path of interest rates. A downward revision to consumer spending meant the U.S. economy grew more slowly in the first quarter than previously estimated, data showed on Thursday, weighing on Treasury yields and the dollar, while boosting risk assets.

The gains in China's stock markets came, even though an official survey showed the country's manufacturing activity unexpectedly fell in May. The soft outcome kept alive calls for fresh stimulus as a protracted property crisis continues to weigh on businesses, consumers and investors.

** At the midday break, the Shanghai Composite index was up 0.27% at 3,099.99. ** China's blue-chip CSI300 index was up 0.2%, with its financial sector sub-index higher by 0.58%, the consumer staples sector up 0.44%, the real estate index up 1.67% and the healthcare sub-index up 0.29%.

** Chinese H-shares listed in Hong Kong rose 1.1% to 6,533.86, while the Hang Seng Index was up 0.94% at 18,402.19. ** For the week, the CSI300 was largely flat, while the Hang Seng has slipped 1.1% so far.

** The smaller Shenzhen index was up 0.6%, the start-up board ChiNext Composite index was higher by 0.54% and Shanghai's tech-focused STAR50 index was up 0.34%​. ** Around the region, MSCI's Asia ex-Japan stock index was up 0.19%, while Japan's Nikkei index was higher 0.92%.

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

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