China stocks rise on strong services data, easing Sino-U.S. tensions

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SHANGHAI, Oct 8 (Businesshala) – Chinese stocks rose on Friday after a week-long national holiday, helped by encouraging services sector data and easing political tensions with the United States.

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The CSI300 index gained 1.1% to 4,918.45 at the end of the morning session, while the Shanghai Composite Index gained 0.3% to 3,579.96.

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The Hang Seng index fell 0.3% to 24,636.46. The Hong Kong China Enterprises Index fell 0.3% to 8,690.51.

** Activity in China’s services sector returned to growth in September as a major COVID-19 outbreak eased in the eastern province of Jiangsu, a private sector survey showed on Friday, providing some support to the slowing economy .

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** But tourism data was weak during the Golden Week holiday, fueling hopes of more policy easing.

“Golden golden week figures are a bad sign for retail sales growth in October,” analysts at Nomura said in a note. “We expect Beijing to increase its monetary and fiscal support.”

**Consumer staples and tourism shares rose more than 4% each.

** The US and China have agreed in principle to hold a virtual meeting for their presidents before the end of the year after high-level talks to improve communication between the two major powers.

** The coal sub-index fell 5.1% after China’s top coal sector asked mines to immediately ramp up production, the latest effort by officials to boost coal supplies amid record-high prices and power shortages .

**Li Ning Company and Wuxi Biologics Inc. in Hong Kong fell 8.7% and 5.7%, respectively, pushing the Hang Seng index down.

** Index heavyweight Alibaba Group jumped 3.3%, pushing the city’s benchmark up 61 points.

** Healthcare sub-index, Energy sub-index, Industrial sub-index and Utility sub-index declined over 2%. (Reporting by Shanghai Newsroom; Editing by Ramakrishnan M)

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