China stocks rise on cautious Fed rate view
SHANGHAI Oct 9 (Reuters) - China stocks rose on Friday in line with stronger global markets amid growing expectations that the U.S. Federal Reserve will wait longer before raising interest rates.
China's flagship indexes extended Thursday's 3 percent gains in a holiday-shortened week.
Both the CSI300 index of the largest listed companies in Shanghai and Shenzhen and the Shanghai Composite Index rose around 1.3 percent, closing at 3,340.12 points and 3,183.15 points, respectively.
Analysts said investors have cut bets that the Fed will raise rates this year, while expectations of more government stimulus to support China's economy have also soothed market jitters.
Economic data for September over the next two weeks is likely to show a further loss of momentum but a gradual one, with no signs of a sharp drop off in activity.
Shares in all sectors rose, with the CSI300 IT Index leading the gains.
The CSI300 Infrastructure Index was up 0.5 percent after China's top economic planner on Thursday encouraged insurance companies to invest in major construction projects.
Green tech stocks also jumped, after a senior central banker said China must make green investments of between 2 trillion and 4 trillion yuan ($315-630 billion) per year over the next five years.
China's third-quarter earnings season kicked into gear on Friday, with Shenzhen-listed Shandong Wohua Pharmaceutical Co reporting a 252 percent surge in profit, offsetting the gloom from Shanghai-listed Xinri Hengli Steel Wire Rope , which posted a loss. (Reporting by the Shanghai Newsroom; Editing by Kim Coghill)
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