November 14, 2016 / 7:27 AM / a year ago

Shanghai stocks inch up to 10-month high on signs of steadier economy

SHANGHAI, Nov 14 (Reuters) - Shanghai’s benchmark stock index reached a 10-month high on Monday, as there are more signs that China’s economy is steadying, but the outlook for further gains is cloudy.

The blue-chip CSI300 index and the Shanghai Composite Index both gained 0.4 pct, to 3,430.25 points and 3,210.37 points respectively.

China’s economy largely showed further signs of steadying in October as expected, but disappointing retail sales growth and fears of U.S. trade frictions under incoming President Donald Trump are increasingly clouding the outlook.

“On balance, today’s data suggest that the recent recovery in economic activity continued into the fourth quarter,” Capital Economics said in a note.

The yuan sank to nearly a 6 1/2-year low after China’s central bank set the midpoint at 6.8291 yuan per dollar, and analysts expect the currency to weaken further before Washington gets new leadership.

On Monday, big-cap blue-chips continued to advance before paring some of their gains.

Sectors were mixed. Gains were led by infrastructure and industry stocks, as well as by heavyweight brokerage stocks, which are set to benefit from the launch, expected soon, of the Shenzhen-Hong Kong stock link.

Major gold miners were among worst performers in the CSI300 Index, as prices sank to 5-month lows. (Reporting by Luoyan Liu and John Ruwitch; Editing by Richard Borsuk)

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