china shares: China shares claw higher as economic recovery quickens

SHANGHAI: China shares ended higher on Tuesday in a relatively tepid session, as optimism over recovering consumption lifted the benchmark index, though data showed a slowdown in new home price growth in the world’s second-largest economy.

At the close, the Shanghai Composite index reclaimed lost ground to end 0.47% higher at 3,328.10. The blue-chip CSI300 index was up 0.8%.

Consumer staples firms jumped 2.35%, powered by breweries and distillers. Economic data released Monday showed that China’s economic recovery quickened in the third quarter, supported by growing consumption.

However, the financial sector sub-index fell 0.34% and real estate firms shed 0.83% following data that dented sentiment around the housing market, which has provided a much-needed support to an economy ravaged by the pandemic.

New home prices in China grew at their slowest pace in more than 4-1/2 years in September as tightening measures introduced by some big cities to guard against a potential market bubble.

The smaller Shenzhen index ended up 1.23% and the start-up board ChiNext Composite index was higher by 1.893%.

Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.36%, while Japan’s Nikkei index closed down 0.44%.

At 0704 GMT, the yuan was quoted at 6.686 per U.S. dollar, 0.07% weaker than the previous close of 6.6813.

Trading activity was light, with about 16.51 billion shares traded on the Shanghai exchange, roughly 74.2% of the market’s 30-day moving average of 22.26 billion shares a day. The volume in the previous trading session was 21.23 billion.

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