China stocks post solid gains as Brexit fears ebb for now

• Nikkei marks biggest weekly profit

China stocks edged up on Friday, posting solid gains during a week in which main indexes erased falls sparked by Britain’s shock vote to leave the European Union.

Sentiment was also aided by data showing that growth in China’s services sector accelerated in June, and on government efforts to ease fears that there might be an accelerated depreciation of the yuan.

The blue-chip CSI300 index was unchanged at 3,154.20 points, while the Shanghai Composite Index edged up 0.1 percent to 2,932.48.

For the week, the CSI300 gained 2.5 percent, while the SSEC rose 2.7 percent.

Official surveys on Friday showed that growth in China’s manufacturing sector stalled in June, reinforcing views authorities would roll out more stimulus in coming months. But activity in the services sector accelerated, cushioning some of the blow.

In an apparent effort to ease market worries about further Yuan devaluation, China’s central bank said late on Thursday that China does not intend to compete in international trade by depreciating the currency.

Sector performance on Friday was mixed. Gains in resources and banking stocks offset falls in the consumer and healthcare sectors.

Meanwhile, Japan’s Nikkei share average rose on Friday for a fifth day as bargain hunting continued and risk appetites remained solid after U.S. and European shares gained.

The Nikkei ended up 0.7 per cent at 15,682.48.

Japanese stocks have erased about half of their losses in the wake of Britain’s shock vote a week ago to leave the European Union.

For the week, the Nikkei jumped 4.9 per cent, the biggest weekly gain since mid-April.

The broader Topix gained 0.7 percent to 1,254.44 and the JPX-Nikkei Index 400 advanced 0.6 percent to 11,320.65.