China stocks post rare weekly rise after Fed rate cut; HK shares jump
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SHANGHAI, Sept 20 (Reuters) -China stocks closed higher on Friday, logging their first weekly gain in a month, as the jumbo U.S. rate cut strengthened bets Beijing will soon unveil fresh stimulus.
** Hong Kong shares rose for the fifth day, posting the best week in five months, amid a broad rally in global equities.
** China's blue-chip CSI300 index .CSI300 reversed early losses to end the session up 0.2%, while the Shanghai Composite index .SSEC also closed higher. Both indexes posted rare weekly gains - only the fourth in 19 weeks.
** Hong Kong's Hang Seng Index .HIS rose 1.4%, bringing its weekly gain to 5.1%,as the Federal Reserve kicked off its rate-cutting cycle on Wednesday with a bigger-than-expected 50-basis-point cut.
** Hong Kong stocks are more sensitive to U.S. rates than shares in China, where regulators impose strict capital controls.
** In China, sectors that benefit from lower rates - including real estate .CSI000948 and tech .CSIASITI rose. Banking shares .CSI399986 also gained on China's Friday inaction on benchmark loan rates. Lower lending rates hurt banks' profitability.
** The Fed starting to cut rates is good news for Chinese assets, but "whether the A-share market can stabilise is mainly determined by economic fundamentals," China International Capital Corp cautioned in a note.
** Around the region, MSCI's Asia ex-Japan stock index .MIAPJ0000PUS was firmer by 0.62%, while Japan's Nikkei index .N225 closed up 1.53%.
** China's CSI financial sector sub-index .CSI300FS was higher by 0.48%, the consumer staples sector .CSI000912 down 0.1%, the real estate index .CSI000952 up 1.37% and the healthcare sub-index .CSI300HC down 1.14%.
** The smaller Shenzhen index .SZSC ended down 0.16% and the start-up board ChiNext Composite index .CNT was weaker by 0.639%.
** In Hong Kong,the sub-index of the Hang Seng tracking energy shares .HSCIE rose 1.3%, while the IT sector .HSCIIT rose 0.37%, the financial sector .HSNF ended 1.27% higher and the property sector rose 1.72%.
Reporting by Shanghai Newsroom; Editing by Mrigank Dhaniwala
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