* SSEC +0.3%, CSI300 +0.1%
* China May PPI +9% y/y, fastest pace in over 12 years
* State planner to step up monitoring of commodity prices
BEIJING, June 9 (Reuters) - China stocks ended higher on Wednesday, driven by coal and resource firms, as investors lapped up data that showed factory-gate prices in May saw their fastest annual pace in more than 12 years, implying signs of steady global economic recovery. ** At the close, the Shanghai Composite index was up 0.32% at 3,591.40, and the blue-chip CSI300 index was up 0.08%. ** Leading the gains, the sub-index tracking energy firms including coal miners rose 3.23% while the resource sector sub-index gained 1.3%.
** Its consumer staples sector was up 0.6%, the healthcare sub-index added 0.16%, while the real estate index fell 0.94%. ** The smaller Shenzhen index ended up 0.14% and the start-up board ChiNext Composite index was steady.
** China’s factory gate prices in May rose at their fastest annual pace in over 12 years, driven by surging commodity prices, highlighting global inflation pressures at a time when policymakers are trying to revitalise COVID-hit growth. ** The release comes as U.S. inflation data on Thursday is being closely watched by investors, who worry another high reading might put pressure on the Federal Reserve to start thinking about tapering its stimulus. ** Though China’s producer price index (PPI) would likely peak soon, concerns remain that PPI may hover at an elevated level for an extended period of time, said Nie Wen, chief economist at Hwabao Trust.
** China’s state planner said on Wednesday it will step up monitoring of commodity prices and commodity market supervision to maintain order in the market. ** The U.S. Senate passed on Tuesday a sweeping package of legislation intended to boost the country’s ability to compete with Chinese technology. ** Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.3%, while Japan’s Nikkei index closed 0.35% lower. ** At 0735 GMT, the yuan was quoted at 6.3926 per U.S. dollar, 0.13% firmer than the previous close of 6.401. (Reporting by Beijing Newsroom, Editing by Sherry Jacob-Phillips)