SHANGHAI, Aug 12 (Reuters) - China stocks slipped on Friday
as domestic COVID-19 cases rose sharply, while uncertainty over
the Federal Reserve's monetary tightening trajectory also dented
sentiment in regional markets.
The CSI300 index and the Shanghai Composite Index
both fell 0.2% at the end of the morning session.
The Hang Seng index added 0.3%, while the Hong Kong
China Enterprises Index gained 0.5%.
** For the week, the CSI300 index is up 0.7% so far and is
set to snap a five-week losing streak. The Hang Seng index
** Daily caseload for COVID-19 has risen to more than 2,000
in recent two days from around 1,000 earlier.
** "COVID-19 resurgence still weighs on market confidence in
macro recovery despite continuous containment policy
re-calibration," said Morgan Stanley analysts in a note.
** "The ongoing housing market uncertainty may also
potentially delay the macro economy's bottoming out," they
** Other Asian stocks also fell on uncertainty over how
aggressively the Fed would raise interest rates.
** Defence stocks retreated 2.2% on Friday,
while still up nearly 3% for the week amid geopolitical
** Energy shares rose more than 2%, and real estate
developers added 0.5%.
** Most other sectors remained tepid. Consumer staples
, information technology, new energy
were down between 0.1% and 1.2% each.
** Mainland property developers traded in Hong Kong
lost 1.4% amid debt woes, with Longfor Group down
3.4%. The Chinese developer rose in the previous session after
it denied rumours that it had missed payment on commercial
** Hong Kong-listed tech companies edged up 0.5%,
with index heavyweights Alibaba and Meituan
up more than 1% each.
** China's sportswear group Li Ning Co surged
nearly 6% to become the biggest percentage gainer in the Hang
Seng Index, as its net profit and revenue for six months jumped.
(Reporting by Shanghai Newsroom; editing by Uttaresh.V)