SHANGHAI, Oct 13 (Businesshala) – Shares in China, raised by consumer and technology stocks, rose on Wednesday, as better-than-expected home trade data dampened fears of a recession from power shortages and Evergrande’s debt crisis.
** The blue-chip CSI300 index rose 1.2% to 4,940.11 points, while the Shanghai Composite Index gained 0.4% to 3,561.76.
** China’s export growth unexpectedly accelerated in September, as still solid global demand offset some pressure on factories from power shortages, supply constraints and a resurgence of domestic COVID-19 cases.
** “September exports also exceeded our above consensus expectations,” wrote Julian Evans-Pritchard, senior China economist at Capital Economics.
** “Separate data shows that electricity consumption did well over the past month, suggesting that the hit from electricity rationing is largely confined to a few energy-intensive industries and has lagged behind widespread manufacturing activity. Not kept as many feared.”
** China’s consumer-facing shares rose 2.5%, and tech-focused Star Market gained 1.9%.
** An index tracking food and beverage stocks jumped 3.3%. Top spirit maker and index heavyweight Kweichow Moutai Co rose 3.1% to touch a two-and-a-half-month high. ** But the CSI300 real estate index declined 0.6%, amid signs Evergrande’s debt crisis is raging through the industry, affecting more Chinese developers. ** China’s coal sub-index fell 5.5 to its lowest level in six weeks as the government took measures to boost supplies, potentially cooling prices.
**Shanghai Datun Energy, Tianan Coal and Huolinhe Coal fell 10%, the highest allowed within a trading day.
** Coal stocks, which jumped at record fuel prices, are down nearly 20% from their September 6 peak.
** China’s energy index also fell nearly 5% by noon. Oil giant PetroChina dropped 4.2%.
** But New Energy shares rose 4%. (Reporting by Shanghai Newsroom; Editing by Krishna Chandra Eluri)