China stocks rebound; investors await US payrolls, domestic data

SHANGHAI: Mainland China stocks rebounded on Thursday after two consecutive sessions of losses, while investors cautiously awaited US jobs data for further clues on the Federal Reserve’s policy outlook and upcoming domestic indicators for signs of the broader economy’s health. At the midday break, the Shanghai Composite index inched up 0.4% and the blue-chip CSI300 index rose 0.5%. The smaller Shenzhen index was up 0.3%, the startup board ChiNext Composite index advanced 0.4% and Shanghai’s tech-focused STAR50 index was largely flat. Property shares were among the biggest winners in morning deals, with a sub-index bouncing 4.9% following three days of sharp losses. In Hong Kong, the benchmark Hang Seng index was largely flat at 25,317.49 points, while the city’s tech shares eased 0.6%. All eyes are now on Friday’s US nonfarm payrolls report, where analysts are forecasting an increase of 56,000 in jobs, following July’s shock drop of 23,000, with unemployment holding at 4.1%. Markets are now pricing in a 61% chance of a Fed rate hike in September. US monetary tightening could affect global financial markets. Meanwhile, domestic August economic data is also in focus. “Economic activi