China stocks gain as low inflation raises policy easing prospect
* CSI300 +1.2 pct; SSEC +0.8 pct; HSI unchanged
* Low inflation data increases monetary easing hopes
* Volume thin as economic worries sideline investors
SHANGHAI, Feb 10 (Reuters) - Chinese shares gained for a second day on Tuesday as lower-than-expected inflation raised the prospect of further monetary easing, but persistent worries over the economy are keeping many investors on the sidelines.
China's annual consumer inflation hit a five-year low in January while factory deflation deepened, underscoring persistent weakness in the economy.
"This could trigger more easing policies, such as additional cuts in interest rates or reserve ratios, which will give the stock market some support," said Li Feng, a trader at Fortune Securities.
"But if the economy continues to deteriorate, the market will fall further."
The CSI300 index rose 1.2 percent, to 3,386.97 points at the end of the morning session, while the Shanghai Composite Index gained 0.8 percent, to 3,120.97 points.
In Hong Kong, the Hang Seng index was unchanged at 24,526.47 points, while the Hong Kong China Enterprises Index gained 0.5 percent, to 11,707.28. Continuación...