SHANGHAI, March 6 (Reuters) - China and Hong Kong stocks were set to end the week lower, despite Friday's gains, as geopolitical risks weighed on sentiment and policy cues from the annual parliamentary meeting offered few surprises.
** China's blue-chip CSI300 Index .CSI300 climbed 0.2% by lunch break on Friday, while the Shanghai Composite Index .SSEC gained 0.3%. Hong Kong benchmark Hang Seng .HSI was up 1.8%.
** The CSI300 Index was on track to end the week 1.1% lower, while the Hang Seng Index was down 3.2%.
** Worries that a wider Middle East conflict could trigger an energy shock, lift inflation, and delay rate cuts pressured Asian markets this week.
** Consumer staples shares led gains onshore .CSICS, up nearly 1.9%. Oil & gas stocks .CSIH30198 fell nearly 3%, while non-ferrous shares .CSISNMIM were down 0.5%.
** Hang Seng Tech Index .HSTECH snapped a four-day losing streak, up 3.6%, after JD.com 9618.HK signalled it would scale back investment in its food-delivery business.
** China on Thursday unveiled its 2026 economic growth target at 4.5%-5% at its annual parliamentary meeting, with most other goals broadly in line with market expectations.
** The National People's Congress maintained a tech-first policy stance while adopting a pragmatic fiscal approach, indicating little upside surprise for the index, Morgan Stanley analysts said in a note.
** They added that they remain more positive on onshore A-shares than offshore markets and favour stock-picking over index exposure. They cited stronger policy support for A-share-focused sectors, softer southbound momentum, and the prospect of state-linked funds buying if volatility rises.
** Onshore investors sold a record of HK$27.7 billion ($3.54 billion) worth of shares via the Stock Connect scheme on Thursday.
** Investors are watching closely for a press conference featuring securities regulator Wu Qing at 0700 GMT for market signals.
($1 = 7.8228 Hong Kong dollars)
(Reporting by Shanghai Newsroom; Editing by Harikrishnan Nair)
((li.gu@tr.com))
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