China stocks rise on easing hopes; HK market fever spills into B shares
* CSI300 +1.2 pct; SSEC: 1.4 pct; HSI: 0.4 pct
* Main indexes set to gain 3.4-9 percent on the week
* China's foreign-currency denominated B share market surges
* inflation data reinforces expectations of monetary easing
SHANGHAI, April 10 (Reuters) - Shares in China and Hong Kong rose on Friday and looked set for solid gains on the week as tepid inflation data reinforced expectations of more policy easing.
China's annual consumer inflation rate (CPI) stayed flat at 1.4 percent, data showed early in the day, while producer prices (PPI) contracted 4.6 percent, highlighting the pressures facing Chinese companies as the economy slows.
ANZ said in a research note that "the soft inflation data in March means the central bank needs to further loosen monetary policies."
ANZ expects another 25 basis point interest rate cut in the second quarter, and an additional 100 basis point cut in banks' required reserve ratios by the end of the third quarter.
The CSI300 index rose 1.2 percent at the end of the morning session, while the Shanghai Composite Index gained 1.4 percent. For the week, they looked set for gains of 3.4 percent and 3.9 percent, respectively. Continuación...