China stocks end lower as rough U.S. talks dent risk appetite | Reuters

Chinese equities ended lower on Friday, marking a weekly loss of 1.4%, after a rough start to China-U.S. bilateral talks prompted heavy selling as risk sentiment soured. ** At the close, the Shanghai Composite index was down 1.69% at 3,404.66, while the blue-chip CSI300 index closed 2.62% lower. ** The financial sector sub-index ended lower by 2.51%, the consumer staples sector dropped 3.02%, and the real estate index was down 3.15%. ** Worries over Sino-U.S. tensions dampened risk appetite even as concerns over lofty valuations persisted, said Yan Kaiwen, an analyst with China Fortune Securities Co. ** The China and United States levelled sharp rebukes here of each others' policies in the first high-level talks of the Biden administration on Thursday, with deeply strained relations of the two global rivals on rare public display during the meeting's opening session in Alaska. ** A spike on U.S. 10-year notes also weighed on the market, Yan said, but the impact be could short-lived. ** Additionally, a monthly settlement of stock index futures also caused market jitters, Zhang Qi, analyst with Haitong Securities Co said, and that sent the blue-chip index and some component indexes in the mainland market lower. ** The smaller Shenzhen index ended down 1.88% and the start-up board ChiNext Composite index was weaker by 2.809%. ** Around the region, MSCI's Asia ex-Japan stock index was weaker by 1.36%, while Japan's Nikkei index closed down 1.41%. (Reporting by Cheng Leng in Beijing, Luoyan Liu and Andrew Galbraith in Shanghai; Editing by Sherry Jacob-Phillips)

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