June 4, 2010 (Chinavestor) Afternoon rallies sent China stocks higher on Friday in Asia, rendering both the Hang Seng Index (INDEXHANGSENG:.HSI) and the Shanghai Composite Index (SHA:000001) virtually unchanged from Thursday. Hong Kong's main gauge was unchanged for the week while the mainland's most liquid index fell -3.5% for the week.
Traders in Hong Kong were encouraged by strong U.S. economic data such as the housing report but investors in Shanghai focused on slower Chinese manufacturing data and uncertainty surrounding short term Chinese fiscal policy. Some argue that tightening will ease in China to make up for the loss on exports bound to a slowing European economy.
Europe's debt problems were in focus for most of the week along with U.S. economic news for Chinese ADRs. The all important jobs report is coming out today sending index futures trading in a narrow range.
China Finance Online (NASDAQ:JRJC) reported after the close and is trading 10% higher before the market open on Friday. But shares of China Medical Technologies (NASDAQ:CMED) fell 5% as disappointing top line growth dented into profits. China stock earnings calendar, June 1-4
U.S. and Chinese indices have been trading in a narrow rage for the week according to the following chart. With so much uncertainly ahead investors are on the wait and see mode before the open on Friday.