* China’s Aug industrial profits fall as headwinds hit firms
* China’s top diplomat says Beijing willing to buy more U.S. products
SHANGHAI, Sept 27 (Reuters) - China stocks edged up on Friday, but posted their sharpest weekly loss since early August due to trade uncertainties and slowing growth, ahead of a week-long holiday.
** The blue-chip CSI300 index rose 0.3% to 3,852.65, while the Shanghai Composite Index inched up 0.1% to 2,932.17.
** For the week, CSI300 was down 2.1%, while SSEC lost 2.5%, their biggest fall since the week ended Aug. 9.
** Profits at China’s industrial firms contracted in August, reversing the previous month’s brief gain, as weak domestic demand and the trade war with the United States weighed on corporate balance sheets.
** “Given strong growth headwinds and elevated U.S.-China trade tensions, we expect the economy to worsen before getting better and believe Beijing will likely ramp up its policy stimulus,” analysts from Nomura said in a note.
** China said on Thursday it is in close communication with the United States over trade talks, while a top diplomat said Beijing is willing to buy more U.S. products.
** But mixed signals from Washington and Beijing were not helpful in boosting risk appetite ahead of the week-long National Day holiday.
** Analysts noted a further deterioration in Sino-U.S. trade tensions would be a key downside risk for the A-share market.
** Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.24%, while Japan’s Nikkei index closed down 0.77%.
** At 0714 GMT, the yuan was quoted at 7.1295 per dollar, 0.02% firmer than the previous close of 7.131.
** The largest percentage gainers in the main Shanghai Composite index were Jiangxi Lianchuang Opto Electronic Science &Technology Co Ltd, up 10.04%, followed by Fujian Raynen Technology Co Ltd, gaining 10.03% and Shanghai Smith Adhesive New Material Co Ltd, up by 10.02%.
** The largest percentage losers in the Shanghai index were Chengdu Xuguang Electronics Co Ltd down 10.03%, followed by Shanghai Sinotec Co Ltd losing 10% and Jiangsu Hongtu High Technology Co Ltd down by 9.9%.
** About 13.29 billion shares were traded on the Shanghai exchange, roughly 68.7% of the market’s 30-day moving average of 19.35 billion shares a day. The volume in the previous trading session was 18.89 billion.
** As of 0715 GMT, China’s A-shares were trading at a premium of 30.57% over the Hong Kong-listed H-shares. (Reporting by Shanghai Newsroom; Editing by Rashmi Aich)