China, HK stocks climb as upbeat service sector buoys risk-on mood

Wynn Macau

03/03/2023 04:50

By Georgina Lee
       HONG KONG, March 3 (Reuters) - China and Hong Kong
shares rose on Friday, led by defence and oil stocks, as a
private sector survey confirmed prospects of strong recovery in
the world's second-biggest economy, lifting risk-on appetite.   
   
    ** China's blue-chip CSI300 Index  .CSI300  edged up 0.03%
at the lunch break, while the Shanghai Composite Index  .SSEC 
gained 0.17%%. 
    ** Hong Kong benchmark Hang Seng  .HSI  was up 0.71%, and
Hang Seng China Enterprises Index  .HSCE  rose 1.03%.     
    ** Asian shares rose on Friday after Wall Street reversed
losses on signals of a measured policy tightening approach from
the U.S. Federal Reserve as well as on prospects of a solid
economic recovery in China.
    ** Activity in China's services sector expanded at the
fastest pace in six months in February as the removal of tough
COVID-19 restrictions revived customer demand, data from a
private sector survey showed on Friday.
    ** The Caixin/S&P Global services purchasing managers' index
(PMI) rose to 55.0 in February from 52.9 in January. The
50-point mark separates expansion and contraction in activity on
a monthly basis.
    ** "Sentiment improved ahead of National People's Congress
(NPC) as a stronger and broader growth recovery unfolded in
February," Morgan Stanley said in a research note published on
Thursday.
    ** The annual session of the NPC kicks off this weekend and
will set economic targets and elect new top economic officials.
    ** "We expect further upside for Chinese equities as the
macro story stays intact," it said. 
    ** Leading the gains in China were aerospace and
defence-related stocks. Shenzhen-listed AVIC Xian Aircraft
Industry Group  000768.SZ  rose 5.11%, hitting a near four-month
high.
    ** The CSI Semiconductors and Semiconductor Equipment Index
 .CSIH30184  gained 1.51%. 
    ** In Hong Kong, oil stocks such as ENN Energy  2688.HK 
also supported gains in the blue-chip Hang Seng Index, up 3%.
    ** Wynn Macau  1128.HK  dropped to a three-month low, down
5.07%, after announcing a proposed $600 million convertible bond
issuance that matures in 2029. The bonds are convertible into
shares at a price of HK$10.24 per share.
    
    

 (Reporting by Georgina Lee; Editing by Sherry Jacob-Phillips)
 ((georgina.lee@thomsonreuters.com; 852-3462 7713))