China stocks soften after weak exports data; Hong Kong flat


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* SSEC 0.0%, CSI300 -0.2%, HSI 0.0%

* HK->Shanghai Connect daily quota used 3.6%

* Shanghai->HK daily quota used 1.7%

* FTSE China A50 -0.4%

SHANGHAI, Dec 9(Reuters) – China stocks slipped on Monday after latest trade data highlighted persistent headwinds for the country’s manufacturers amid a prolonged Sino-U.S. trade war.

** The CSI300 index fell 0.2%, to 3,893.71 points at the end of the morning session, while the Shanghai Composite Index was unchanged at 2,911.26.

** China’s exports in November shrank for the fourth consecutive month, underscoring the pressure on manufacturers from the tariff war with United States, but growth in imports may be a sign that Beijing’s stimulus steps are helping to stoke demand.

** The 17-month long trade dispute has heightened the risks of a global recession and fuelled speculation that China’s policymakers could unleash more stimulus, as growth in the world’s second-largest economy cooled to nearly 30-year lows.

** As far as the latest Chinese trade numbers suggest, the impetus is on for some form of Sino-U.S. trade resolution to ease the pressure on the trade front, Jingyi Pan, a Singapore-based market strategist with financial services firm IG, said.

** Top White House economic adviser Larry Kudlow said on Friday that a Dec. 15 deadline is still in place to impose a new round of U.S. tariffs on Chinese consumer goods, but President Donald Trump likes where trade talks with China are going.

** China will keep its economic growth within a reasonable range in 2020, with more “forwarding-looking, targeted and effective” policies that also fend off risks, a top decision-making body of the ruling Communist Party said on Friday.

** For the short term, China’s major indexes are likely to continue to trade in narrow ranges, as the economy is still under pressure, while liquidity conditions tend to be tight as year-end draws near, Lianxun Securities analysts said.

** In Hong Kong, the benchmark index gave back earlier gains to be flat amid worries over protests in the city.

** The Hang Seng index was unchanged at 26,504.76, while the Hong Kong China Enterprises index gained 0.1%, to 10,413.31.

** Vast crowds of black-clad demonstrators thronged Hong Kong on Sunday in the largest anti-government protests since local elections last month that boosted the pro-democracy movement seeking to curb controls by China.

** Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.17% while Japan’s Nikkei index was up 0.33%.

** The yuan was quoted at 7.035 per U.S. dollar, barely changed compared to the previous close of 7.035.

** So far this year, the Shanghai stock index is up 16.77%, while China’s H-share index is up 2.8%. Shanghai stocks have risen 1.39% this month.

** As of 04:02 GMT, China’s A-shares were trading at a premium of 28.74% over the Hong Kong-listed H-shares. (Reporting by Luoyan Liu and John Ruwitch; Editing by Shounak Dasgupta)


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