SHANGHAI, April 6 (Reuters) - China and Hong Kong stocks
fell on Thursday as simmering Sino-U.S. tensions offset fresh
evidence of economic recovery, but a sustained rally in
artificial intelligence (AI) and semiconductor shares capped
losses in China.
** China's blue-chip CSI300 Index fell 0.3% by the
lunch break, while the Shanghai Composite Index was
little changed.
** Hong Kong's Hang Seng Index fell 0.1%, and the
China Enterprises Index lost 0.3%. Tech stocks traded in
Hong Kong declined 1.0%.
** China's services activity in March revved up at the
quickest pace in 2-1/2 years on robust new orders and job
creation and a consumption-led post-COVID recovery, a
private-sector survey showed on Thursday.
** But any optimism was counteracted by a flare-up in
Sino-U.S tensions as U.S. House Speaker Kevin McCarthy hosted
Taiwanese President Tsai Ing-wen in California on Wednesday, and
stressed the need to accelerate arms deliveries to Taiwan in the
face of rising threats from China.
** An index tracking China's defence stocks rose as maritime authorities in China's Fujian province launched
a three-day special patrol and inspection operation in the
Taiwan Strait.
** Meanwhile, investors closely monitor the China visits by
EU chief Ursula von der Leyen and French President Emmanuel
Macron, which could set a course for future relations after
years of strained ties.
** China's AI-related stocks continued to rise despite
growing bubble concerns following price surges over the past
month on the back of the ChatGPT mania.
** The AI index rose 1.1% while China's
chipmaking index surged 4.9%.
(Reporting by Shanghai Newsroom; Editing by Varun H K)
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