SHANGHAI: China stocks rose on Friday after data showed the country’s consumer prices increased at a faster-than-expected rate in July, although analysts cautioned that demand remains sluggish.
The rise also tracked a jump in global markets, as data showed US jobless claims fell more than expected last week, suggesting fears the labor market is unraveling were overblown.
Asian shares are ending a rough week on a high as Japanese stocks are close to recouping all of the huge losses from Monday, while the yen slipped again as markets pared back the chance of an outsized US rate cut.
China stocks track Asian markets higher
China’s consumer price index (CPI) edged up 0.5% from a year earlier in July, versus a 0.2% rise in June, the National Bureau of Statistics reported, beating a 0.3% increase in a Reuters poll of economists.
“Conditions are in place to see inflation trend a little higher in the coming months but it should not impede further monetary easing,” said Lynn Song, chief economist of Greater China at ING.
“We continue to look for at least one more rate cut this year with the potential for more if global rate cuts accelerate.”
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At the midday break, the Shanghai Composite index was up 0.12% at 2,873.47 points and the blue-chip CSI 300 index rose 0.14%.
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The financial sub-index rose 0.35%, consumer staples inched up 0.27%, and real estate jumped 2.41%, but healthcare stocks fell 1.06%.
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Chinese H-shares listed in Hong Kong rose 1.94% to 6,056.63, while the Hang Seng Index was up 1.77% at 17,191.43.
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The smaller Shenzhen index was unchanged for the day, the start-up board ChiNext Composite index was weaker by 0.12% and Shanghai’s tech-focused STAR50 index was unchanged for the day.
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Around the region, MSCI’s Asia ex-Japan stock index was firmer by 2.04% while Japan’s Nikkei index was up 1.16%.
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