China stocks fall on profit-taking, concerns over fresh virus cases

Boc Hong Kong Holdings

13/10/2020 05:54

SHANGHAI, Oct 13 (Reuters) - China stocks inched lower on
Tuesday, on some profit taking after recent sharp gains and
concerns after mainland China reported a new cluster of
coronavirus infections in the eastern port city of Qingdao,
though strong trade data capped losses.
** Some investors were worried that the new cluster in Qingdao
could prompt a potential spike in locally transmitted cases
linked to the Golden Week holiday that ended last week. 
    
** Mainland China reported its first locally transmitted
COVID-19 infections in nearly two months, as Qingdao launched a
city-wide testing drive after discovering new cases linked to a
hospital designated to treat imported infections.  urn:newsml:reuters.com:*:nB9N2G502N
    
** At the midday break, the Shanghai Composite index  .SSEC  was
down 0.28% at 3,348.90, while the blue-chip CSI300 index
 .CSI300  was down 0.02%.
    
** The smaller Shenzhen index  .SZSC  was up 0.14%, the start-up
board ChiNext Composite index  .CNT  was higher by 0.19% and
Shanghai's tech-focused STAR50 index  .STAR50  was up 0.37%​.

** Losses were limited by official trade data, which showed
China's imports grew at their fastest pace this year in
September, while exports extended their strong gains as more
trading partners lifted coronavirus restrictions in a further
boost to the world's second-biggest economy.  urn:newsml:reuters.com:*:nL4N2H20BO
    
** "In the near-term, infrastructure-led stimulus looks set to
continue alongside a gradual recovery in oil prices, which is
likely to keep imports strong," said Julian Evans-Pritchard,
senior China economist at Capital Economics. "Meanwhile, exports
should continue to benefit from the recovery in global demand."
   
** China's premier Li Keqiang said the country needs to make
arduous efforts to achieve its full-year economic goals,
according to a report on Monday from state broadcaster CCTV.
 urn:newsml:reuters.com:*:nB9N2D400D
    
** Trading in Hong Kong's securities and derivatives markets was
canceled on Tuesday due to Typhoon 8 signal.  urn:newsml:reuters.com:*:nFWN2H30WP 
    
** Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  was firmer by 1.29% while Japan's Nikkei index
 .N225  was up 0.16%.
 

 (Reporting by Winni Zhou and Andrew Galbraith)
 ((winni.zhou@thomsonreuters.com; +86 21 2083 0100; Reuters
Messaging: winni.zhou.thomsonreuters.com@reuters.net))