China stocks rise amid optimism about 2023 despite COVID woes

** Other Asian equities rose as investors looked to end the year on an optimistic note after U.S. data showed the Federal Reserve's aggressive monetary policy was dampening inflationary pressures. ** China shares are poised to record the worst year since 2018, with the CSI 300 Index down 21.4% so far.

China stocks rebounded on Friday, after dropping in the previous two sessions, as traders looked for bright spots in 2023 amid authorities vowing to support growth. ** China's blue-chip CSI 300 Index and the Shanghai Composite Index were both up 0.6% by the end of the morning session.

** Hong Kong's Hang Seng Index and the Hang Seng China Enterprises Index added 0.8% each. ** Other Asian equities rose as investors looked to end the year on an optimistic note after U.S. data showed the Federal Reserve's aggressive monetary policy was dampening inflationary pressures.

** China shares are poised to record the worst year since 2018, with the CSI 300 Index down 21.4% so far. Hong Kong's stock benchmark, meanwhile, had slumped roughly 15%, set to log the worst year since 2011. ** Investors and analysts are more optimistic about China's shares next year, as China dismantled its strict zero-COVID policy this month, sending its shares rebounding roughly 10% since a recent low on Oct. 31.

** Global banks including Citi, Bank of America, and J.P. Morgan had upgraded recommendations for China stocks, while expecting an economic recovery next year. ** Ming Ming, chief economist at CITIC Securities said factors weighing on China stocks in the past two years including COVID policy, property downturn, Fed tightening and China's crackdown on internet platforms are all expected to be improved in 2023.

** To support the slowing economy, the finance ministry said on Thursday China will boost fiscal spending "appropriately" in 2023, focusing on tech innovation and key strategic sectors. ** Chinese leaders have pledged to step up policy adjustments to cushion the impact on businesses and consumers of a surge in COVID-19 infections.

** However, near-term pressure from surging COVID cases and deaths kept sentiment subdued. The Shanghai Composite Index lost nearly 2% in December, while the CSI 300 Index edged up 0.7%. ** Around 9,000 people in China are probably dying each day from COVID-19, UK-based health data firm Airfinity said on Thursday.