China stocks rise on strong services data, easing Sino-US tensions

SHANGHAI: Chinese shares rose on Friday after a week-long national holiday, helped by encouraging service sector data and easing political tensions with the United States.

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

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

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

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

** "Sluggish golden week data bode poorly for retail sales growth in October," Nomura analysts said in a note. "We expect Beijing to ramp up its monetary and fiscal support."

** The consumer staples and the tourism shares jumped more than 4% each.

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

** The coal sub-index slumped 5.1%, after China's top coal region has told mines to boost output immediately, the latest attempt by authorities to boost coal supply amid record-high prices and shortages of electricity.

** In Hong Kong, Li Ning Co and WuXi Biologics Inc fell 8.7% and 5.7%, respectively, dragging the Hang Seng Index lower.

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

** The healthcare sub-index, the energy sub-index , the industrial sub-index, and utility sub-index declined more than 2%.