Shanghai stocks retreated from a 13-month closing high to end lower on Thursday, as investors locked in gains following a strong rally underpinned by signs of an economic rebound.
SHANGHAI: Shanghai stocks retreated from a 13-month closing high to end lower on Thursday, as investors locked in gains following a strong rally underpinned by signs of an economic rebound.
The blue-chip CSI300 index ended 0.4 percent weaker at 4,072.08 points, while the Shanghai Composite Index closed 0.4 percent lower at 3,250.20 points.
China's economy grew at a steady 6.4 percent pace in the first quarter, data showed on Wednesday, defying expectations for a further slowdown, as industrial production jumped sharply and consumer demand showed signs of improvement.
The stock market, which has priced in economic stabilisation, has surged roughly 30 percent so far this year. However, investors kept a cautious stance as they looked for further clues on the health of the global economy.
"Stocks have risen a lot this year. However, there's no need to worry, because it's just recouping last year's losses, and we think there's still room to rise," said Louis So, co-chief investment officer of Value Partners Group, citing signs of economic recovery, relatively low valuations, and continuous foreign money inflows.
Hong Kong stocks fell on Thursday to end below the 30,000-mark, a psychologically key resistance level, as investors booked profits while awaiting fresh catalysts following a spate of economic data this week that offered tentative signs of an economic rebound on the mainland.
The Hang Seng index fell 0.5 percent to 29,963.26 points, while the China Enterprises Index lost 0.7 percent to close at 11,768.63 points.
China's economy grew at a steady 6.4 percent pace in the first quarter, data showed on Wednesday, defying expectations for a further slowdown, as industrial production jumped sharply and consumer demand showed signs of improvement.
With China's economic stabilisation largely priced in a strong rally so far this year, investors turned cautious as they waited for evidence that the recovery is sustainable.
Most sectors fell, led by materials and IT firms .Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.4 percent, while Japan's Nikkei index closed down 0.84 percent.
In Seoul, South Korean shares slumped 1.4 percent on Thursday as foreign investors and local institutions trimmed their equity exposure amid intensifying trade frictions. The won and the benchmark bond yield fell after the central bank cut its 2019 growth forecast further to a seven-year low.
The main KOSPI stock index closed down 32.12 points, or 1.43%, at 2,213.77, declining for a second straight session.
Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.4 percent, while Japan’s Nikkei index closed down 0.84 percent. - Reuters
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