HONG KONG: China and Hong Kong shares rose on Friday, led by semiconductors and tech stocks, as a private sector survey confirmed prospects of a strong recovery in the world’s second-biggest economy.
China’s blue-chip CSI300 Index climbed 0.31%, while the Shanghai Composite Index gained 0.54%, closing at its highest level year-to-date.
Hong Kong benchmark Hang Seng was up 0.68%. For the week, the index gained 2.8%, marking the first weekly rise after four consecutive weekly losses. The Hang Seng China Enterprises Index rose 1.2%.
Asian shares rose after Wall Street reversed losses on signals of a measured policy tightening approach from the US 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 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.
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