SSEC +0.3%, CSI300 +0.2%, HSI +0.6%, HSCE +0.5%
Caixin services PMI down m-o-m but recovery continues
Financials lose steam; tech, consumption shares rise
HONG KONG, Aug 5 (Reuters) - China stocks rose marginally on Wednesday as investor confidence in the country's economic upswing stayed intact, though a drop in financials tamed the broader market's strength.
** At the midday break, the Shanghai Composite index .SSEC was up 0.4% at 3,381.35 points.
** China's blue-chip CSI300 index .CSI300 was up 0.2%, with the consumer staples sector .CSI000912 rising 0.1% and consumption discretionary .CSI000911 advancing 0.5%.
** Chinese H-shares listed in Hong Kong .HSCE rose 0.5%, while the Hang Seng Index .HSI climbed 0.6% to 25,088.36.
** The smaller Shenzhen index .SZSC added almost 1%, the start-up board ChiNext Composite index .CNT gained 1.5% and Shanghai's tech-focused STAR50 index .STAR50 rose 1.7%.
** Growth in China's services sector slowed in July from a decade high the previous month, but remained in expansion territory, an industry survey showed on Wednesday.
** The recovery in the services sector - accounting for 60% of the economy - has gathered pace in recent months as the nationwide social restrictions lifted.
** China reported 27 new coronavirus cases in the mainland for Aug. 4, down from 36 cases a day earlier.
** Financial sector stocks .CSI300FS, which rallied on cheap valuations in the previous session, fell 0.8% on Wednesday.
** "We had an upward move from financials yesterday which failed to follow through today," said Alex Wong, director at Ample Finance Group, noting that the sector's outlook remained poor.
** "But people are still buying into China consumption, the big caps are doing okay today. The mood in the market is overall positive," he added.
** Senior U.S. and Chinese officials will review the implementation of their Phase 1 trade deal on Aug. 15. Beijing's top U.S. envoy said it does not want further tensions.
** Around the region, MSCI's Asia ex-Japan stock index .MIAPJ0000PUS firmed 0.6% while Japan's Nikkei index .N225 dipped 0.2%.
(Reporting by Noah Sin, Editing by Sherry Jacob-Phillips)
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