China stocks slid on Friday, as energy and transport shares shed some recent gains, causing an end to the main indexes' five-week winning streak. The bluechip CSI300 index fell 0.6 percent to 3,417.46, while the Shanghai Composite Index lost 0.5 percent to 3,192.86 points. For the week, SSEC was down 0.1 percent, while CSI300 was flat.
Stocks had advanced most of the week, yet gains were capped by a rout in commodities market, which dragged down heavyweight materials stocks, mostly big-cap energy and non-ferrous stocks. Premier Li Keqiang's comment that China will accomplish key 2016 development tasks, plus a raft of data showing signs of economic stabilisation, helped bolster risk appetites.
But a sliding yuan, which fell to a fresh 8-year low on resurgent dollar, was a worry for investors. Most sectors lost ground of Friday. Transport stocks were down 2.2 percent, as port and shipping shares took a breather after a rally. The real estate sector was a winner, aided by a strong rally in bellwether China Vanke, which rose 2.7 percent to a fresh record, on news that China Evergrande Group further lifted its stake to more than 9 percent. Global markets remain fixated on Donald Trump's surprise US election victory and what it means for international and domestic policies, with expectations a Trump administration will boost inflation and growth in the US sending the dollar sharply higher. Federal Reserve Chair Janet Yellen said on Thursday in Congressional testimony that the Fed could raise interest rates 'relatively soon'.
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