China, HK stocks rise after Wall St hits record, but caution lingers

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SHANGHAI, July 12 (Reuters) – China and Hong Kong stocks rose on Friday morning after Wall Street touched fresh record highs overnight, but the main indexes were set to post declines for the week.

** The market is awaiting a slew of China economic data to gauge health of the world’s second-biggest economy, while renewed worries over Sino-U.S. trade tensions kept investors on edge, capping the rebound.

** The CSI300 index rose 0.7%, to 3,811.57 points at the end of the morning session, while the Shanghai Composite Index gained 0.5%, to 2,931.12 points. So far this week, CSI300 is down roughly 2%, while SSEC has lost 2.7%.

** In Hong Kong, the Hang Seng index added 0.5%, to 28,574.46 points, while the Hong Kong China Enterprises Index gained 0.6%, to 10,844.93.

** China is due to release June trade and lending data on Friday, while second-quarter GDP figures are scheduled for Monday. China’s economy is expected to have slowed to its weakest pace in at least 27 years, raising hopes for more stimulus ahead.

** Zhu Haiwen, analyst at Nanjing Securities, said that investors are assessing how government policies are impacting companies’ fundamentals amid the first-half earnings season.

** Meanwhile, worries over Sino-U.S. trade tensions resurfaced after U.S. President Donald Trump tweeted on Thursday that China was not living up to promises it made on buying agricultural products from American farmers.

** China’s CSI300 financial sector sub-index was higher by 1.04%, the consumer staples sector up 0.38%, the real estate index up 0.86% and the healthcare sub-index up 0.4%. ** Chinese H-shares listed in Hong Kong rose 0.56% at 10,844.93, while the Hang Seng Index was up 0.5% at 28,574.46. ** The smaller Shenzhen index was up 0.48% and the start-up board ChiNext Composite index was higher by 0.34%. ** Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.08%, while Japan’s Nikkei index was up 0.14%. ** The yuan was quoted at 6.8721 per U.S. dollar, 0.03% firmer than the previous close of 6.874. ** The largest percentage gainers in the main Shanghai Composite index were Jiangsu Chengxing Phosph-Chemical Co Ltd, up 10.1%, followed by Anhui Liuguo Chemical Co Ltd, gaining 10.09% and JCHX Mining Management Co Ltd, up by 10.05%. ** The largest percentage losses in the Shanghai index were QuMei Home Furnishings Group Co Ltd, down 7.87%, followed by Guangdong Songyang Recycle Resources Co Ltd , losing 7.61% and Suzhou Secote Precision Electronic Co Ltd, down by 7.53%.

Reporting by Luoyan Liu and John Ruwitch; Editing by Arun Koyyur