Shares of major Chinese tech companies soared Friday after a meeting in which top officials called for the "healthy development" of the sector, fuelling hope among investors that a damaging state crackdown may ease.

Beijing has embarked on a sweeping clampdown over the past year that has clipped the wings of its biggest internet firms.

But in a meeting of the government's decision-making body on Friday, officials concluded it was "necessary to promote the healthy development of the platform economy" and "complete its rectification", according to the official Xinhua news agency.

In the Politburo meeting, chaired by President Xi Jinping, officials also said there was a need to "respond to market concerns in a timely manner", Xinhua reported.

Shares of Chinese tech firms rocketed in Hong Kong, with JD.com and Alibaba rising around 15 percent, while Tencent shares jumped 11 percent.

"Stocks are oversold and there is speculation of the potential end to the crackdown on these companies," said Justin Tang, head of research at United First Partners, told Bloomberg News.

China's top officials also pledged efforts to meet economic targets -- a signal that authorities could increase stimulus, with economic activity battered by harsh Covid-19 controls to try and stamp out outbreaks in key cities.

On Friday, leaders also stressed the need to "effectively manage and control key risks," and push for the stable and healthy development of the real estate market, Xinhua said.

Beijing has been working to boost confidence in the economy and reassure markets in a series of recent statements.

But analysts caution that China's strict anti-virus measures -- which have snarled travel and supply chains -- could still hamper the announced support measures.

Markets rally as China tech share surge lifts sentiment
Hong Kong (AFP) April 29, 2022 - Hong Kong and Shanghai led a rally across Asian and European markets Friday on hopes Beijing is set to ease its long-running crackdown on the tech sector.

But sentiment remains fragile as traders operate under the shadows of war, soaring inflation, US interest rate hikes and China's lockdowns.

Wall Street finished solidly higher Thursday to recoup losses suffered earlier in the week, as investors brushed off data showing a sharper-than-expected first-quarter economic contraction and took heart on strong spending figures.

A healthy showing by Facebook parent Meta also provided a lift to Wall Street, though tech titans Apple and Amazon brought things back down to Earth with their post-close reports.

Apple saw a bump in profits but warned China's Covid-19 lockdowns and long-running supply chain woes could deal a $4-$8 billion blow in the next three months.

Amazon revealed its first quarterly loss since 2015, owing to its investment in electric truck maker Rivian -- and then warned of continuing challenges in the months ahead.

There was some much-needed good news for China's embattled tech sector after the official Xinhua news agency reported that a meeting of the government's decision-making body ended with officials saying it was "necessary to promote the healthy development of the platform economy" and "complete its rectification".

The report suggests an easing of the sweeping clampdown on the country's biggest firms.

In the Politburo meeting, chaired by Xi Jinping, officials also said there was a need to "respond to market concerns in a timely manner".

Hong Kong climbed four percent -- with titans Alibaba, Meituan and JD.com up more than 15 percent each, while Tencent put on around 11 percent.

Shanghai put on more than two percent, while there were also healthy gains across the rest of the region.

Sydney, Seoul, Singapore and Taipei all piled on more than one percent, with Mumbai, Wellington and Jakarta also up. Tokyo was closed for a holiday.

London, Paris and Frankfurt all rose in early trade -- even as data showed the eurozone economy was showing signs of slowing.

But traders are increasingly concerned the recovery in the US economy could be thrown off course, warning officials will struggle to achieve a soft landing by controlling prices while still nurturing growth.

"The Fed's record on soft landings is not that strong," Carol Schleif, at BMO Family Office, told Bloomberg Television.

"Markets are watching very, very carefully to see if we can thread that needle."

Inflation data due later in the day will be closely watched for a better handle on the outlook.

Still, most markets in Asia rose heading into the weekend, with hopes China will continue its recent run of pledges of support.

Oil was slightly higher as the commodity continues to win support from the Ukraine war, though investors remain wary about the impact on demand from China caused by Covid-19 lockdowns.

The advances follow a rally on Thursday as Europe discussed a gradual ban on Russian imports, with Germany -- which relies heavily on energy from the country -- edging towards support for a move.

China factory activity dips to lowest in two years: official data
Beijing (AFP) April 30, 2022 - China's manufacturing activity slumped to its lowest level since February 2020, official data showed Saturday, the latest sign of economic pain as Beijing doggedly pursues its zero-Covid response.

The official Purchasing Managers' Index (PMI), a key gauge of manufacturing activity, clocked 47.4 in April -- below the 50-point mark separating growth from contraction -- as authorities said that a "decline in production and demand" has deepened.

The figures come as Beijing's policy of swiftly stamping out infections with lockdowns and mass testing has been severely challenged by an Omicron-fuelled pandemic resurgence.

Dozens of cities, including economic powerhouses like Shenzhen and Shanghai, have been either fully or partially sealed off in recent months.

The inflexible approach -- even as most of the world learns to live with the virus -- has inflicted mounting economic pain, with the curbs snarling supply chains and leaving goods piling up at the world's busiest container port.

National Bureau of Statistics (NBS) senior statistician Zhao Qinghe acknowledged that some enterprises have had to reduce or stop production, while many firms have reported an increase in transportation difficulties.

"The production and operation of... enterprises have been greatly affected," Zhao said, according to an NBS statement that also noted the price indexes for raw materials remain "relatively high".

The official non-manufacturing PMI plummetted to its lowest level since early 2020 as well, NBS figures showed, as the country braces for a muted Labour Day holiday.

On Saturday, Chinese media group Caixin released its own manufacturing purchasing managers' index, showing a second straight month of deterioration, with the figure dropping from 48.1 to 46.0.

The Caixin survey, which covers small and medium-sized enterprises, is seen by some as a more accurate reflection of China's economic situation than the official government figures, which more closely track the condition of large state groups.

"Covid control measures have done a number on logistics," said Caixin Insight Group senior economist Wang Zhe in a statement.

Caixin also noted that firms expressed concerns over how long Covid restrictions would remain in place.

On Thursday, tech giant Apple warned that China's Covid lockdowns were among the factors that would dent its June quarter results by $4-8 billion.

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Most Asian markets track Wall St rally but tech struggles
Hong Kong (AFP) April 29, 2022
Equity markets in Asia mostly rose Friday following a positive lead from Wall Street but optimism remains at a premium as traders operate under the shadows of war, soaring inflation, US interest rate hikes and China's lockdowns. Technology firms were weighed by Apple and Amazon's surprisingly downbeat earnings and warnings about the outlook, while oil dipped but held most of Thursday's gains on a possible embargo on Russian crude. US shares finished solidly higher Thursday to recoup losses suffe ... read more