China stocks edge up on likely safe-haven flows amid regional weakness

Techtronic Industries Co

08/08/2024 10:08

(Updates to market closing levels)
       SHANGHAI, Aug 8 (Reuters) - China stocks rose slightly
on Thursday, bucking weakness in broader Asian markets, as some
investors likely saw the Chinese market as a safe haven despite
a faltering economic recovery.
    Tech shares led a selloff in stock markets around Asia,
while the yen and U.S. bonds rebounded, as global investors
struggled to find their footing in a wild week for markets.
    "We think a deep correction in the Japanese market has
limited impact on China's A-shares," analysts at Shanghai
Securities said in a note.
    "Funds are expected to flow back into A-share. We believe
that increased uncertainty in the overseas market and increased
expectations of a recent interest rate cut by the Federal
Reserve may prompt funds to seek safe havens."
    China's yuan was also slightly firmer against the U.S.
dollar on Thursday, in tandem with a stronger Japanese yen,
improving sentiment for the stock market.
    The rise came even after China's exports grew at their
slowest pace in three months in July, missing expectations and
adding to concerns about the outlook for the manufacturing
sector.
    ** At the close, the Shanghai Composite index  .SSEC  was
largely flat at 2,869.90.
    ** The blue-chip CSI300 index  .CSI300  was up 0.04%, with
its financial sector sub-index  .CSI300FS   higher by 0.27%, the
consumer staples sector  .CSI000912  up 1.24%, the real estate
index  .CSI000952  up 0.86% and the healthcare sub-index
 .CSI300HC  up 0.38%.
    ** The smaller Shenzhen index  .SZSC  ended down 0.12% and
the start-up board ChiNext Composite index  .CNT  was weaker by
0.545%.
    ** At the close of trade, the Hang Seng index  .HSI   was up
13.97 points or 0.08% at 16,891.83. The Hang Seng China
Enterprises index  .HSCE  rose 0.14% to 5,941.47.
    ** The sub-index of the Hang Seng tracking energy shares
 .HSCIE  rose 0.5%, while the IT sector  .HSCIIT  rose 0.21%,
the financial sector  .HSNF  ended 0.1% higher and the property
sector rose 0.47%.
    ** Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  was weaker by 0.38%, while Japan's Nikkei index
 .N225  closed down 0.74%.
    

 (Reporting by Shanghai Newsroom; Editing by Varun H K and
Eileen Soreng)
 ((Jason.Xue@thomsonreuters.com;))