SHANGHAI: Mainland China stocks closed largely flat on Thursday after two consecutive sessions of losses, as investors cautiously awaited US jobs data for further clues on the Federal Reserve’s policy outlook and upcoming domestic indicators for signs of the broader economy’s health.
At the close, the benchmark Shanghai Composite index ended largely unchanged at 3,942.09 points and the blue-chip CSI300 index inched up 0.1 percent.
The smaller Shenzhen index ended up 0.1 percent and the start-up board ChiNext Composite index was unchanged, while Shanghai’s tech-focused STAR50 index eased 0.4 percent.
Property shares were among the biggest winners, with a sub-index bouncing 4.1 percent following three days of sharp losses.
In Hong Kong, the benchmark Hang Seng index fell 0.4 percent, while the city’s tech shares dropped 1.1 percent.
Shares of online fast-fashion retailer SHEIN Global Holdings plunged 8.7 percent in the third day of Hong Kong trading.
All eyes are now on Friday’s US nonfarm payrolls report, where analysts are forecasting an increase of 56,000 in jobs, following July’s shock drop of 23,000, with unemployment holding at 4.1 percent.
Markets are now pricing in a 61 percent chance of a Fed rate hike in September. US monetary tightening could affect global financial markets.
Meanwhile, domestic August economic data is also in focus.
“Economic activity should stay sluggish for August, as widely expected, yet the key thing to watch is whether a catch-up recovery starts in September on recent policy push,” Citi analysts said in a note.
China’s services activity expanded at a faster pace in August, a private-sector survey showed on Thursday, with stronger domestic demand helping firms add staff for a fourth consecutive month.
Meanwhile, China’s central bank governor told the G20 Finance Ministers and Central Bank Governors meeting that the country never deliberately pursues a trade surplus and insists on expanding domestic demand and maintaining a high level of opening up to the world, according to a statement from the bank on Wednesday.