China stocks ticked up on Thursday as global central banks look poised to ease policies, while concerns about a slowdown in the country's economic growth weighed on investor sentiment.
At the close, the
Shanghai Composite index was up 0.1 per cent at 2,917.76. The blue-chip CSI300 index was flat.
CSI300's financial sector sub-index was higher by 0.1 per cent, the consumer staples sector fell 0.2 per cent, while the healthcare sub-index eased 0.3 per cent.
The smaller Shenzhen index ended down 0.1 per cent, while the start-up board ChiNext Composite index was higher by 0.2 per cent.
China will release its second-quarter
gross domestic product (GDP) data on Monday, July 15.
Growth is expected to slow to a near 30-year low of 6.2 per cent this year, a Reuters poll showed on Wednesday, despite a flurry of support measures to spur domestic demand to offset the trade war's impact. Some economists said they expected Beijing to roll out more stimulus soon to ward off a sharper slowdown.
China will stabilise trade by reducing tariffs, improving export tax rebate policies and cutting insurance fees for export companies, state media reported on Wednesday, citing a state council meeting chaired by Premier Li Keqiang.
Citic Securities analysts expect policy support to tame the economy's slowdown in the second half. They said in a note on Thursday that there was "more certainty on infrastructure (spending) accelerating, (which) can offset some of the downward pressure on industrial production prices."
US Federal Reserve Chair Jerome Powell on Wednesday paved the way for the first US interest rate cut in a decade later this month, pledging to 'act as appropriate' to defend an economic expansion threatened by trade disputes and a global slowdown.
Shares raced higher around the region.
MSCI's Asia ex-Japan stock index was firmer by 0.7 per cent, while Japan's Nikkei index closed up 0.5 per cent. The S&P 500 briefly crossed the 3,000-point mark for the first time overnight on Powell's remarks.
The largest percentage gainers in the main Shanghai Composite index were Taiyuan Chemical Industry Co Ltd and
Geo-Jade Petroleum Corp, up 10.1 per cent each, and Jiangsu Chengxing Phosph-Chemical Co Ltd, up 10 per cent.
So far this year, the Shanghai stock index is up almost 17 per cent and the CSI300 has risen 25.7 per cent. Shanghai stocks have declined 2.1 per cent so far this month.
About 14.37 billion shares were traded on the Shanghai exchange. The volume in the previous trading session was 13.55 billion.
The Shanghai stock index is below its 50-day moving average and above its 200-day moving average.