China stocks end higher on upbeat data, trade bloc

China stocks ended higher on Monday after upbeat data pointed to a continued recovery in the world's second-largest economy, with the establishment of a China-backed trade bloc aiding sentiment.

The blue-chip CSI300 index rose 1.0%, to 4,904.17, while the Shanghai Composite Index gained 1.1% to 3,346.97 points.

The tech-heavy start-up board ChiNext added 0.2%, while the Shanghai STAR50 index rose 0.7%.

China's factory output rose faster-than-expected in October and retail sales continued to recover although at a slower-than-forecast pace.

Property investment was a key driver of broader spending, with October real estate investment up 12.7% from a year earlier, the fastest pace since July 2018 and quickening from 12% seen in September, according to Reuters calculations based on NBS data.

Materials firms led the gains on Monday, with the CSI300 materials index rising 3.8%. The index has gained 31% so far this year.

Investors also welcomed the establishment of a China-backed trade bloc that excludes the United States.

Fifteen Asia-Pacific economies formed the world's largest free trade bloc on Sunday, which had left a rival Asia-Pacific grouping under President Donald Trump.

Responding to Washington's decision to ban U.S. investments in firms tied to the Chinese military, China's commerce ministry said the U.S. should stop its unreasonable suppression of Chinese firms.

Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.45%, while Japan's Nikkei index closed up 2.05%.

At 0722 GMT, the yuan was quoted at 6.5761 per U.S. dollar, 0.45% firmer than the previous close of 6.606.

As of 0723 GMT, China's A-shares were trading at a premium of 41.05% over the Hong Kong-listed H-shares.