Chinese shares closed up on Monday amid signs of stabilisation in the world's second-largest economy, while property and technology stocks dragged the Hong Kong market.
** China's blue-chip CSI 300 Index ended 0.5% higher, while the Shanghai Composite Index edged up 0.3%.
** Meanwhile, Hong Kong's Hang Seng Index and the Hang Seng China Enterprises Index declined 1.4% and 1.6%, respectively.
** Data on Friday showed China's factory output and retail sales grew at a faster pace in August, while a slump in the property sector worsened despite a recent flurry of support measures.
** After the data showed some signs of stabilisation in recovery, J.P.Morgan and ANZ raised their 2023 economic growth forecasts for China by 20 basis points each to 5% and 5.1%, respectively.
** "Multiple indicators show China's growth momentum stabilised or improved in August after the sharp deterioration in Q2, suggesting that the worst of the latest deflationary shock to the economy is now past," Gavekal Dragonomics analysts said in a note.
** In mainland markets, consumer discretionary, healthcare, tourism and automobile shares advanced between 1.4% and 3% to lead the gains.
** The real estate sector and semiconductor companies dropped 1.1% and 1.7%, respectively.
** The worst of China's property crisis is not yet over, a survey of Chinese and international investors carried out by JPMorgan showed.
** Goldman Sachs said it expects the impact of the declining property sector to "likely to weigh on the economy for many quarters to come."
** Mainland property developers listed in Hong Kong also lost 2%, and tech giants retreated 2.2%.
** "A strong recovery is still unlikely. The latest housing policy changes haven't yet produced a dramatic reaction from homebuyers, and the fundamental outlook for external demand is tepid," said Gavekal Dragonomics analysts. (Reporting by Shanghai Newsroom; Editing by Subhranshu Sahu and Varun H K)