China stocks edged up on Friday, posting solid gains during a week in which main indexes erased falls sparked by Britain's shock vote to leave the European Union. Sentiment was also aided by data showing that growth in China's services sector accelerated in June, and on government efforts to ease fears that there might be an accelerated depreciation of the yuan.
The bluechip CSI300 index was unchanged at 3,154.20 points, while the Shanghai Composite Index edged up 0.1 percent to 2,932.48. For the week, the CSI300 gained 2.5 percent, while the SSEC rose 2.7 percent. Official surveys on Friday showed that growth in China's manufacturing sector stalled in June, reinforcing views authorities will roll out more stimulus in coming months. But activity in the services sector accelerated, cushioning some of the blow.
In an apparent effort to ease market worries about further yuan devaluation, China's central bank said late on Thursday that China does not intend to compete in international trade by depreciating the currency. Sector performance on Friday was mixed. Gains in resources and banking stocks offset falls in the consumer and healthcare sectors. The market firmed as global risk appetites returned this week. Sentiment was also aided by data showing growth in China's services sector accelerated in June, and on government comments easing concern there might be accelerated depreciation of the yuan. Hong Kong markets are closed on Friday for a public holiday. "The manufacturing PMIs continue to disappoint," Capital Economics wrote to clients.
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