China stocks rose after a private survey showed more signs of economic stability on Thursday, with sentiment also spurred by the upcoming Shenzhen-Hong Kong Stock Connect scheme. The blue-chip CSI300 index rose 1 percent, to 3,365.09, while the Shanghai Composite Index gained 0.8 pct to 3,128.94 points.
Earlier in the day, a private survey showed growth in China's services sector accelerated in October, reinforcing the view that the world's second-largest economy is on a steadier footing.
The Caixin/Markit services purchasing managers' index (PMI) rose to 52.4 in October on a seasonally adjusted basis from 52.0 in September, posting the strongest reading since June.
Investors are also responding to headline news that a global roadshow promoting the Shenzhen-Hong Kong Stock Connect scheme has been completed, pushing up shares of brokerages , betting they will benefit from the programme.
Most sectors advanced, led by infrastructure and financial stocks.
Big-cap, state-owned infrastructure stocks surged after a near 7-session breather, with China State Construction Engineering and China Communications Construction both soaring 10 percent, the maximum allowed.
China equities, which are less vulnerable to global market volatility, edged up by midday, aided by signs of looser liquidity in the banking system.
"In the short term, the US election represents the biggest risk to investors, who don't like surprises," said Charles Wang, Chairman of Shenzhen-based Appleridge Capital Management Co.
Narrowing polls in the past week have led markets to price in more risk that Republican Donald Trump might defeat his Democratic rival Hillary Clinton, perhaps remembering the turmoil that followed the surprise Brexit vote.
However, Wang said he expects the Hong Kong market to get support from mainland investors soon as the Shenzhen-Hong Kong Stock Connect scheme will be launched as soon as this month.
Investors are already responding to headline news that a global roadshow promoting the Connect scheme has been completed, pushing up shares of mainland brokerages listed in Hong Kong and China, betting they will benefit from the programme.
Earlier in the day, a private survey showed growth in China's services sector accelerated in October, reinforcing the view that the world's second-largest economy is on a steadier footing.
But financial and telecom sectors in Hong Kong were among just a few sectors that ended morning trading in positive territory.
In China, most sectors rose, led by financial and infrastructure stocks, amid signs that both short-term rates and longer-term treasury yields are edging lower, easing concerns of tighter liquidity.