Yuan depreciation hits China airline, oil shares, HK stocks up
* CSI300 -0.5 pct; SSEC -0.4 pct; HSI +1.0 pct
* Chinese carriers slump on yuan devaluation, but exporters jump
* Excitement in state sector reform not sustainable - trader
SHANGHAI, Aug 11 (Reuters) - China's surprise decision to allow its currency to fall hit the shares of airlines and oil on Tuesday, threatening to boost their fuel costs and dragging stock market indexes lower.
Exporters surged, however, on expectations that the currency move would improve their competitiveness.
The central bank described the near 2 percent devaluation as a "one-off", based on a new way of managing the exchange rate that better reflected market forces, but economists said the timing suggested it was also aimed at helping exporters and the sluggish economy.
The CSI300 index fell 0.5 percent to 4,064.79 points by the end of the morning session, while the Shanghai Composite Index lost 0.4 percent to 3,912.86 points.
"Yuan depreciation is apparently bad for importers and good for exporters," said David Dai, Shanghai-based investment director at Nanhai Fund Management Co Ltd.
"The excitement over state sector reforms (see in recent sessions) is not sustainable. The market will be volatile." Continuación...