China shares post weekly gains on economic recovery; Sino-U.S. tensions weigh
SHANGHAI, Feb 5 (Reuters) - China stocks ended higher for the week on Friday, as investors found support from a continued economic recovery, though Sino-U.S. tensions remained a worry.
** The blue-chip CSI300 index .CSI300 rose 0.2% to 5,483.41, while the Shanghai Composite Index .SSEC slipped 0.2% to 3,496.33.
** For the week, CSI300 climbed 2.5%, while SSEC inched up 0.4%.
** Investors continued to trade the economic recovery story, while ample funds still favoured leading blue-chips that were seen as "core assets" in the A-share market and Hong Kong, analysts at Dongxing Securities said in a report.
** Data over the weekend showed China's factory activity grew in January, in line with an ongoing economic recovery, but at the slowest pace in five months after new coronavirus infections prompted lockdowns. nL1N2K602M
** Worries over Sino-U.S. tensions, however, kept gains in check.
** The United States is deliberately "creating tension" and disrupting peace and stability, China's military said, after a U.S. warship sailed through the sensitive Taiwan Strait. nL1N2KA3HB
** Bucking the broad strength, small-cap stocks continued to slide, as institutional investors favoured big companies. nL4N2KA1NH
** The CSI1000 index .CSI1000I, lost 2% on Friday to a near eight-month low, bringing its losses for the year to more than 9%.
** Around the region, MSCI's Asia ex-Japan stock index .MIAPJ0000PUS was weaker by 0.52%, while Japan's Nikkei index .N225 closed up 1.54%.
** At 07:15 GMT, the yuan CNY=CFXS was quoted at 6.4746 per U.S. dollar, 0.04% weaker than the previous close of 6.472.
** As of 07:16 GMT, China's A-shares were trading at a premium of 36.15% over the Hong Kong-listed H-shares.
(Reporting by Shanghai Newsroom; Editing by Rashmi Aich)