Stocks post first weekly gain on MSCI index talk

Mainland stocks posted their first weekly gain in almost two months, as speculation MSCI Inc will include yuan-denominated shares in its global indexes was tempered by concern over the slowing economy and falling yuan.

The Shanghai Composite Index rose 0.5 percent at the close, taking its weekly gain to 4.2 percent. A rally on Tuesday spurred by Goldman Sachs Group Inc comments that MSCI inclusion was likely to be announced this month has fizzled out as the yuan neared a five-year low.

Manufacturing data for May released on Wednesday failed to ease concern about the outlook for the world's second-largest economy, after April figures trailed estimates.