China stocks set to end week at 10-month high on strong data; HK lags
** China's blue-chip CSI300 Index and the Shanghai Composite Index were up 1% each by the lunch break. Hong Kong benchmark Hang Seng slipped 0.7%.
** The Shanghai Composite Index rose to 3,642 points on Friday, its highest level since October 2024.
** China stocks have steadily climbed this week, supported by upbeat trade and service activity data. For the week, the CSI300 Index has gained 1.5% so far, while the Hang Seng Index rose 1.7%.
** "The market may be underpricing the risk of near-term deterioration in the U.S.-China relationship," said Morgan Stanley strategists led by Laura Wang.
** The strategists urged investors to monitor developments in trade tensions and flagged the upcoming NPC Standing Committee meeting and second-quarter earnings season as potential catalysts for market direction. In the interim, they expressed a preference for mainland-listed A-shares over their Hong Kong-listed H-share counterparts.
** U.S. President Donald Trump said on Wednesday that he could announce further tariffs on China, similar to the 25% duties announced earlier on India over its purchases of Russian oil, depending on the developments in the trade discussions.
** China is facing an August 12 deadline to reach a durable tariff agreement with Trump's administration.
** Tech majors traded in Hong Kong were down 1%, while materials shares were up nearly 2%.
** Shares of semiconductors dropped 1.4%, weighed down by a nearly 6% fall in China's largest chipmaker SMIC after it reported weaker-than-expected second-quarter earnings.
This article was generated from an automated news agency feed without modifications to text.
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