China stocks shine in first week of 2023 on economic recovery hopes
China stocks were set to log a five-day winning streak on Friday as investors hope the economy will soon emerge from COVID woes and see a robust recovery. ** China’s blue-chip CSI 300 Index was up 0.7% by the end of the morning session, while the Shanghai Composite Index added 0.4%.
** Hong Kong’s Hang Seng Index and the Hang Seng China Enterprises Index rose 0.5% and 0.7%, respectively. ** For the week, the CSI 300 Index has gained 3.2% so far, while the Hang Seng benchmark has added 7% to reach a six-month high.
** Other Asian equities also gained, while the dollar hovered near a one-month high as investors braced for crucial U.S. jobs data later in the day that should provide clues on how aggressive the Federal Reserve will be in tightening policy. ** “A-share sentiment recovered steadily post new year,” said Morgan Stanley analysts in a note.
** “We expect nationwide infections to peak in January … an earlier peak in infection cases implies earlier normalization in economic activity. We thus expect the economy to start a strong recovery in 2Q23,” J.P.Morgan analysts wrote in a note. ** China expects the total number of passenger trips made by travellers by road, rail, water and flight during the upcoming Lunar New Year to reach 2.1 billion this year, double from last year’s 1.05 billion during the same period.
** New energy shares added 4.3% to lead the gains, while tourism, healthcare lost 2.4% and 0.6%, respectively. ** Tech giants listed in Hong Kong added 0.6%, with Alibaba and Tencent up more than 2% each.
** Hong Kong’s Hang Seng Mainland Properties Index rose 2.3% after China established a dynamic adjustment mechanism on mortgage rates for first-time home buyers, in a bid to further support the property sector. ** Morgan Stanley said Chinese equities will likely lead global stock market performance in 2023, and advised investors to be overweight on China within global equity portfolios with a skew towards the offshore space.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)