China shares rise as coal firms gain on factory-gate inflation data

BEIJING: China shares rose on Wednesday, driven by coal and resource firms, as factory-gate prices rose at their fastest annual pace indicating that global economic recovery has picked up pace, but concerns about curbs on commodity prices capped gains.

** At the midday break, the Shanghai Composite index was up 0.4% at 3,594.53 and the blue-chip CSI300 index was up 0.21%.

** Leading the gains, its sub-index tracking energy firms including coal minders surged 3.62% while the resource sector gained 1.46%.

** Consumer staples sector was up 0.73%, the healthcare sub-index rose 0.52% while the real estate index was down 0.63%.

** Chinese H-shares listed in Hong Kong fell 0.12% to 10,716.78, while the Hang Seng Index was down 0.07% at 28,762.26. ** The smaller Shenzhen index was up 0.38%, the start-up board ChiNext Composite index was higher by 0.28% and Shanghai's tech-focused STAR50 index was up 0.98%?.

** China's factory gate prices rose at their fastest annual pace in over 12 years in May, driven by surging commodity prices, adding to global price pressures at a time when policymakers are trying to revitalise growth following the COVID-19-induced slump.

** Though China's producer price index (PPI) would likely peak soon, the worry remained that PPI may hover at an elevated level for an extended period of time, said Nie Wen, chief economist at Hwabao Trust.

** Chinese policymakers have pledged to take measures to cool commodity prices and prevent them being passed on to consumers.

** The US Senate passed on Tuesday a sweeping package of legislation intended to boost the country's ability to compete with Chinese technology.

** Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.22% while Japan's Nikkei index was down 0.34%.

** The yuan was quoted at 6.3949 against the dollar, 0.1% firmer than the previous close of 6.401.