China stocks rise as Shanghai says 'victory' against Covid getting closer

The blue-chip CSI300 index rose 0.8% to 3,988.60, while the Shanghai Composite Index gained 1% to 3,084.28 points.
China stocks rise as Shanghai says 'victory' against Covid getting closer
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BEIJING: China stocks rose on Friday as Shanghai said it aimed to reach the zero-Covid level in areas outside its tightly regulated quarantine zones this month, while authorities' pledges to support the economy also lifted sentiment. The blue-chip CSI300 index rose 0.8% to 3,988.60, while the Shanghai Composite Index gained 1% to 3,084.28 points.

** For the week, the CSI300 index gained 2%, its biggest jump in six weeks since Shanghai entered a city-wide lockdown, while the Shanghai Composite Index climbed the most in three months, up 2.8%.

** Shanghai's deputy mayor, Wu Qing, said in a news conference that "victory" was getting closer but the fight against China's biggest-ever Covid outbreak "still requires the joint exertions of every citizen".

** Wu also said Shanghai would start to steadily ease traffic restrictions and open shops this month, while Beijing on Thursday denied rumors of sweeping lockdown measures and urged people to avoid panic buying of essential items and stay at home.

** The Covid resurgence is having a "huge impact" on China's economy, but such impact will be short-lived, the official Xinhua news agency quoted the deputy head of the National Bureau of statistics as saying on Thursday.

** Earlier that day, officials said China is ready to take new steps to support the economy when the need arises.

** China wants to promote the healthy development of the online platform economy, the state cabinet said on Friday while talking about measures to boost prospects for college graduates.

** Morgan Stanley analysts said in a note that sentiment saw a marginal uptick versus pre-Labour Day reading while suggesting patience in the near term.

** "The timing and scale of follow-through actions from the recent top-down easing stance remain contingent on the Covid situation, complicated by quantitative tightening and global geopolitical tension," they added.

** Real estate developers jumped 4.9%, while automobiles surged 6.6% and coal miners added 3.4%.

** U.S. Federal Reserve Chair Jerome Powell said on Thursday that the battle to control inflation would "include some pain".

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