China stocks rise as unexpectedly strong trade data ease slowdown fears

  • 10/13/2021
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SHANGHAI, Oct 13 (Reuters) - China stocks ended Wednesday higher, lifted by consumer and technology stocks, as better-than-expected domestic trade data eased slowdown fears fanned by a power crunch and Evergrande’s debt crisis. ** The blue-chip CSI300 index rose 1.2%, to 4,940.11 points, while the Shanghai Composite Index gained 0.4% to 3,561.76 points. ** China’s export growth unexpectedly accelerated in September, as still solid global demand offset some of the pressures on factories from power shortages, supply bottlenecks and a resurgence of domestic COVID-19 cases. ** “September exports beat even our above-consensus expectations,” wrote Julian Evans-Pritchard, Senior China Economist at Capital Economics. ** “Coupled with separate data showing that electricity consumption held up well last month, this suggests that the hit from power rationing has largely been confined to a few energy-intensive industries and did not hold back wider manufacturing activity as many had feared.” ** China’s consumer-related stocks gained 2.5%, and the tech-focused STAR Market rose 1.9%. ** An index tracking food & beverage stocks jumped 3.3%. Top spirit maker and index heavyweight Kweichow Moutai Co rose 3.1% to touch a two-and-a-half-month high. ** But the CSI300 Real Estate Index dropped 0.6% amid signs Evergrande’s debt crisis is rippling through the industry, hitting more Chinese developers. ** China’s coal subindex tumbled 5.5 to its lowest level in six weeks as the government took measures to boost supply, potentially cooling prices. ** Shanghai Datun Energy, Tianan Coal and Huolinhe Coal plunged 10%, the most allowed within a trading day. ** Coal shares, which had jumped on record prices of the fuel, is down roughly 20% from its Sept. 6 peak. ** China’s energy index also plunged, down nearly 5% by midday. Oil giant PetroChina dropped 4.2%. ** But new energy shares surged 4%. (Reporting by Shanghai Newsroom; Editing by Krishna Chandra Eluri) Our Standards: The Thomson Reuters Trust Principles.

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