China stocks end lower as surge in global virus cases weigh

SHANGHAI: China stocks closed lower on Tuesday as material and transport firms dropped following worries about surge in global cases of the novel coronavirus.

The blue-chip CSI300 index ended 1.2 per cent lower at 4,635.76 and the Shanghai Composite Index 1.3 per cent at 3,274.30. The CSI300 materials index and the CSI300 transport index dropped 2.9 per cent and 3 per cent, respectively.

New pandemic measures in the UK set off declines in airline, hotel and cruise companies in both European and U.S. markets, spurring fears about further restrictions.

Concerns over Sino-U.S. tensions also dented sentiment.

Beijing is unlikely to approve an "unfair" deal Oracle Corp and Walmart Inc said they have struck with ByteDance over the future of video-streaming app TikTok, state-backed newspaper Global Times said in an editorial.

Among sectors, only securities firms gained as investors cheered latest consolidation in the industry.

The Guolian-Sinolink merger could help consolidate financial resources and promote healthy development of the securities industry, analysts at Guosen Securities said in a report.

Consumer shares erased earlier gains though losses were narrower than other sectors.

China's cabinet on Monday issued guidelines to boost new types of consumption, including online shopping and payments, in a bid to support the recovery of the economy.

Around the region, MSCI's Asia ex-Japan stock index was weaker by 1.26 per cent, while Japan's Nikkei index closed up 0.18 per cent.

At 0729 GMT, the yuan was quoted at 6.7926 per U.S. dollar, 0.17 per cent firmer than the previous close of 6.8044.

As of 0730 GMT, China's A-shares were trading at a premium of 46.80 per cent over the Hong Kong-listed H-shares.