** China's blue-chip CSI300 Index climbed 0.31%, while the Shanghai Composite Index gained 0.54%, closing at its highest level year-to-date.
** Hong Kong benchmark Hang Seng was up 0.68%. For the week, the index gained 2.8%, marking the first weekly rise after four consecutive weekly losses. The Hang Seng China Enterprises Index rose 1.2%.
** Asian shares rose after Wall Street reversed losses on signals of a measured policy tightening approach from the U.S. Federal Reserve as well as on prospects of a solid economic recovery in China.
** Activity in China's services sector expanded at the fastest pace in six months in February as the removal of tough COVID-19 restrictions revived customer demand, data from a private sector survey showed on Friday.
** The Caixin/S&P Global services purchasing managers' index (PMI) rose to 55.0 in February from 52.9 in January. The 50-point mark separates expansion and contraction in activity on a monthly basis.
** "Sentiment improved ahead of National People's Congress (NPC) as a stronger and broader growth recovery unfolded in February," Morgan Stanley said in a note published on Thursday.
** The annual session of the NPC kicks off this weekend and will set economic targets and elect new top economic officials.
** "We expect further upside for Chinese equities as the macro story stays intact," it said.
** Leading the gains in China were semiconductor stocks, as the CSI Semiconductors and Semiconductor Equipment Index gained 2.56%.
** Aerospace and defence-related stocks led the gains in the
morning. Shenzhen-listed AVIC Xian Aircraft Industry Group rose 5.45%, hitting a near four-month high.
** In Hong Kong, oil stocks such as China Petroleum &
Chemical Corp supported gains in the blue-chip Hang
Seng Index, up 4.07%. Chinese internet search giant Baidu surged 5.29%
** Wynn Macau dropped to a three-month low, down 4.33%, after announcing a proposed $600 million convertible bond issuance that matures in 2029. The bonds are convertible into shares at a price of HK$10.24 per share. (Reporting by Georgina Lee; Editing by Sherry Jacob-Phillips and Uttaresh Venkateshwaran)
