* CSI300 +0.1 pct; SSEC +0.2 pct; Hong Kong closed for holiday
* PMI shows China manufacturing stall; service sector accelerated
* China c.bank says won’t compete in trade via yuan depreciation
SHANGHAI, July 1 (Reuters) - China stocks edged up on Friday, flirting with two-month highs and on track to gain about 2.5 percent during a week it erased falls sparked by the shock Brexit vote.
The market firmed as global risk appetites returned this week. Sentiment was also aided by data showing growth in China’s services sector accelerated in June, and on government comments easing concern there might be accelerated depreciation of the yuan.
The blue-chip CSI300 index was up 0.1 percent by lunch break, while the Shanghai Composite Index gained 0.2 percent, to 2,935.20 points.
The CSI300 was up 2.6 percent so far this week, while the SSEC was 2.8 percent ahead.
Hong Kong markets are closed on Friday for a public holiday.
An official survey on Friday showed that growth in China’s manufacturing sector stalled in June, but the services sector accelerated.
“The manufacturing PMIs continue to disappoint,” Capital Economics wrote to clients.
“But given the recent resilience of the service sector and signs of strength in construction, we still aren’t overly concerned about the near-term outlook for China’s economy.”
The yuan slipped against the dollar on Friday, after Reuters reported on Thursday that China’s central bank is willing to tolerate a 4.5 percent drop in the yuan for 2016.
But there are no signs of panic selling in the Chinese currency, as China’s central bank said after the Reuters report that China does not intend to compete in international trade by depreciating the yuan. It accused some media of publishing “inaccurate information” on the yuan foreign exchange rate.
On mainland markets, sector performance on Friday was mixed. Gains in resources and banking stocks offset falls in the consumer and healthcare sectors.
Reporting by Samuel Shen and John Ruwitch; Editing by Richard Borsuk