China stocks rise on robust service activity

Chinese stocks extended gains on Thursday, up for the fifth session in a row, aided by data showing that Chinese services sector activity grew at its best pace in more than three years in December.

At the close, the Shanghai Composite Index was up 0.49 percent at 3,385.71 points.

The blue-chip CSI300 index was up 0.42 percent, with its financial sector sub-index lower by 0.09 percent, the consumer staples sector up 2.71 percent, the real estate index up 1.15 percent and the healthcare sub-index up 0.9 percent.

Meanwhile, the smaller Shenzhen index ended up 0.54 percent and the start-up board ChiNext Composite Index was almost unchanged by the time the market closed.

China’s services sector activity expanded in December on solid growth in new business, with the outlook improving to a six-month high, a private sector survey showed on Thursday.

Asian shares flirted with 10-year highs on Thursday because solid economic figrues from the US and Germany reinforced investors’ optimism.

MSCI’s broadest index of Asia-Pacific shares outside Japan was almost flat as profit-taking in South Korean shares ahead of major earnings next week offset gains in other markets.

Japan’s Nikkei index jumped 2.5 percent on its first trading day of the year while the broader Topix hit its highest level since 1991.

“The economic data published over the holiday period has been pretty good. So for those who were worried about New Year profit-taking, the market looks pretty strong,” said Hirokazu Kabeya, chief global strategist at Daiwa Securities.