SHANGHAI: Property developers and technology firms lifted China stocks on Monday, while Hong Kong shares slipped, tracking global markets after surprise output cuts by Saudi Arabia and other OPEC+ oil producers added to worries about global inflation.
** China’s blue-chip CSI 300 Index climbed 0.9% by the end of the morning session and the Shanghai Composite Index added 0.6%.
** Hong Kong’s Hang Seng Index, meanwhile, edged down 0.6% and the Hang Seng China Enterprises Index lost 0.8%.
** Real estate developers gained 2.4% and financials shares added 1.5% after a private survey showed prices of new homes in 100 Chinese cities rose at the fastest pace in nine months in March, as government support measures helped accelerate demand in large- and mid-sized cities.
** Information technology and media shares surged more than 3% each to outperform other sectors, amid a frenzied tech and media shares rally, driven by the launch of Microsoft’s ChatGPT.
China stocks close up as manufacturing activity expands
** Oil prices surged on Monday after Saudi Arabia and other OPEC+ producers announced a surprise round of output cuts, a potentially ominous sign for global inflation. Asia equity markets slipped on the news.
** Tech giants listed in Hong Kong lost 1.2%, tracking Asia markets lower. Meanwhile, energy shares traded in the city rose 1.5% as oil prices soared.
** Separately, China’s factory activity growth stalled in March, weighed by slowing production and weaker global demand, adding to uncertainty about a post-COVID recovery, a private sector survey showed on Monday.
** “The foundation for economic recovery is not yet solid. Looking forward, economic growth will still rely on a boost in domestic demand, especially an improvement in household consumption,” said Wang Zhe, senior economist at Caixin Insight Group.
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