Updates to market close
SHANGHAI, Feb 3 (Reuters) - China stocks ended higher on Tuesday, led by construction machinery and defence shares, while a rebound in gold prices after a two-session selloff in the commodities market lifted sentiment in non-ferrous metal shares.
** The blue-chip CSI300 Index .CSI300 closed up 1.2%, while the Shanghai Composite Index .SSEC gained 1.3%. Hong Kong's benchmark Hang Seng .HSI was up 0.2%.
** Construction machinery .CSI931752 and defence .CSI399973 shares rose 6.1% and 4.6% respectively.
** Non-ferrous metal shares .CSISNMIM ended 3.1% higher. In Hong Kong, material stocks .HSCIM gained 4.4% as spot gold XAU= jumped more than 5%, set for its biggest daily gain since November 2008.
** China investors widely expect the macroeconomic backdrop to remain steady, with signs pointing to a gradual recovery, UBS analysts said in a note to investors.
** They said the market style is transitioning from being driven by liquidity and themes to being driven by earnings and leading companies.
** "A key focus will be on verifying the recovery in Producer Price Index $(PPI)$ and corporate profits, as these factors will be crucial in determining whether the market can shift from valuation re-rating to earnings-driven growth," they said.
** The Hang Seng Tech Index .HSTECH dropped as much as 3% to its lowest since July 15, 2025, after announcements from Chinese telecom firms on value-added tax adjustments stoked concerns of broader tax increases across the sector.
** Tencent shares 0700.HK fell as much as 6% to their weakest level since early August last year, before recouping some of the losses.
** Chinese AI chipmaker Cambricon Technologies 688256.SS ended 9% lower after it denied it gave out any confidential revenue guidance at small gatherings recently.
** Eastroc Beverage 9980.HK shares traded flat in their Hong Kong trading debut, after the Chinese energy drinks producer raised HK$10.14 billion ($1.3 billion) in a share sale.
(Reporting by Shanghai Newsroom; Editing by Subhranshu Sahu and Harikrishnan Nair)
((li.gu@tr.com))
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