China stocks recover lost ground as upbeat export data calms nerves

* SSEC +0.01%, CSI300 -0.03%, HSI -0.55%

* China exports rise 3.5% y/y vs forecast -15.7%

* Stocks are in upbeat momentum since late March

Beijing/SHANGHAI, May 7(Reuters) - China shares recovered lost ground from early losses on Thursday after data showed that exports in the world’s second-largest economy unexpectedly rose in April for the first time this year, stoking brief hopes of a recovery from the coronavirus crisis.

** Stocks, however, traded flat around the midday break as analysts were sceptical whether the strength will last and also expected pressures to persist as the outbreak shuts down economies around the world.

** China’s exports unexpectedly rose in April for the first time this year, taking some pressure off manufacturers after the coronavirus pandemic battered demand and disrupted manufacturing supply chains.

** “The upbeat trend in the market is firm as China’s economy is on the right path of recovery,” said Zhang Yanbin, an analyst with Zheshang Securities. “There are sufficient signs that factories are accelerating to restart production.”

** At the midday break, the Shanghai Composite index was up 0.01% at 2,878.43 points.

** Stocks have been rebounding since late March as economic activities restarted businesses from the lockdown put in place to curb the spread of the pandemic. The Shanghai composite index closed at the highest in eight weeks on Monday after gains in three consecutive trading days. ** China’s blue-chip CSI300 index was down 0.03%, with its financial sector sub-index lower by 0.4%, the consumer staples sector up 1.15%, the real estate index down 0.73% and the healthcare sub-index up 0.01%. ** The smaller Shenzhen index was up 0.31% and the start-up board ChiNext Composite index was higher by 0.09%.

** Chinese H-shares listed in Hong Kong fell 0.42% to 9,766.49, while the Hang Seng Index was down 0.55% at 24,005.13.

** Positive export data also lifted the regional markets that were trading cautiously on Thursday morning with renewed Sino-U.S. tensions lurking in the background. ** Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.22%, while Japan’s Nikkei index was up 0.19%.

** The yuan was quoted at 7.0955 per U.S. dollar, 0.11% firmer than the previous close of 7.1035.

** China’s 5G-related stocks outperformed the market with the CSI 5G communication index adding 0.37% by midday. The U.S. Department of Commerce is close to signing off on a new rule that would allow U.S. companies to work with China’s Huawei Technologies on setting standards for next generation 5G networks, people familiar with the matter said.

** China reported two new coronavirus cases for May 6, imported unchanged from the same number of increases the day before, data from the national health authority showed on Thursday. Both were so-called imported cases involving travellers from overseas. (Reporting by Zhang Yan in Beijing and Andrew Galbraith in Shanghai, Editing by Sherry Jacob-Phillips)

Nuestros Estándares: Los principios Thomson Reuters.