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China stocks have best week in two years

Reuters  |  SHANGHAI 

(Reuters) - stocks ended mixed on Friday, but posted their best weekly gain in more than two years.

The blue-chip CSI300 index rose 0.4 percent to 3,492.69 points, while the Composite Index ended down 0.2 percent to 2,831.18 points.

For the week, SSEC gained 3.1 percent, while CSI300 was up 3.8 percent, both posting their best week since June 2016.

Overall, reaction to China's June trade data was muted.

China's exports unexpectedly accelerated in June and its trade surplus with the hit a record high in a positive sign for the economy, though the overall result looks set to keep a bitter trade dispute with on the boil for a while longer.

China's trade surplus with the swelled to a record in June as its overall exports remained solid, a result that could further inflame a bitter trade dispute with

Trade war fears have been clouding the market, though many believe the selling pressure is fading away, as stocks could be bolstered by historically low valuations and warm signals from policymakers, including cuts to banks' reserve requirements.

The U.S. slapped import tariffs of 25 percent on $34 billion worth of Chinese goods on July 6, while the lack of a specific response from provided some relief.

Analysts have raised their 2018 growth forecasts for China's economy, a surprising result given an escalating trade war with the United States, as they see a deleveraging drive and pollution crackdown having less of an impact than initially expected.

Around the region, MSCI's Asia ex-stock index was firmer by 0.52 percent while Japan's Nikkei index closed up 1.85 percent.

At 07:04 GMT, the yuan was quoted at 6.6677 per U.S. dollar, 0.08 percent firmer than the previous close of 6.673.

The largest percentage gainers in the main Composite index were up 10.08 percent, followed by gaining 10.02 percent and Co Ltd up by 10.02 percent.

The largest percentage losses in the Shanghai index were down 10.06 percent, followed by losing 10.02 percent and down by 9.96 percent.

So far this year, the Shanghai stock index is down 14.4 percent, the CSI300 has fallen 13.3 percent, while China's H-share index listed in Hong Kong is down 8.1 percent. Shanghai stocks have declined 0.56 percent this month.

About 11.77 billion shares were traded on the Shanghai exchange, roughly 89.5 percent of the market's 30-day moving average of 13.15 billion shares a day. The volume in the previous trading session was 14.70 billion. As of 07:05 GMT, China's A-shares were trading at a premium of 20.72 percent over the Hong Kong-listed H-shares.

(Reporting by Shanghai Newsroom; Editing by Sunil Nair)

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

First Published: Fri, July 13 2018. 13:16 IST