China composite stock index slips, blue-chips rise as global rally pauses

China composite stock index slips, blue-chips rise as global rally pauses

China’s composite stock index edged lower on Friday, while the blue-chip average ended slightly higher, as investors locked in profits in other Asian markets after a recent rally boosted by a coronavirus stimulus plan by U.S. President Joe Biden.

The blue-chip CSI300 index edged up 0.1% to 5,569.78, while the Shanghai Composite Index slid 0.4% to 3,606.75.

For the week, the indexes rose 2.1% and 1.1%, respectively, their biggest weekly jump in two.

The tech-heavy start-up board ChiNext surged 2.3%, while the STAR50 index gained 0.3%.

Republicans in the U.S. Congress have indicated they are willing to work with the new president on his administration’s top priority, a $1.9 trillion fiscal stimulus plan, but some are opposed to the plan’s price tag.

The CSI300 materials index rose 1.95% and the CSI300 transport index climbed 0.2%.

“A-share sentiment cooled down a bit after two weeks of rapid rises in the new year,” Morgan Stanley wrote in a research note. “Near-term sentiment may be range-bound given free liquidity dip and rising COVID concerns.”

Beijing launched mass COVID-19 testing in some areas on Friday, while Shanghai was testing all hospital staff as China battles its worst outbreak of the disease since March and families fret over reunion plans for the Lunar New Year amid new curbs.

Mainland China reported a slight decline in new daily COVID-19 cases on Friday – 103 from 144 cases a day earlier.

Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.7%, while Japan‘s Nikkei index closed 0.4% lower.

At 0709 GMT, the yuan was quoted at 6.4728 per U.S. dollar, 0.21% firmer than the previous close of 6.4595.

Source link


Please enter your comment!
Please enter your name here