Hong Kong stocks rise to 3-week high on commodities; China flat

China Modern Dairy Holdings

05/01/2017 04:59

* SSEC +0.1 pct, CSI300 flat, HSI +1.3 pct 
    * Caixin services PMI rises to 17-month high in December 
    * Energy majors rally on oil and coal strength 
 
    SHANGHAI, Jan 5 (Reuters) - Hong Kong stocks climbed to a 
three-week high on Thursday morning, buoyed by strength on Wall 
Street, improving private sector activity and strong resource 
shares. 
    China stocks were flat and trading was thin, with investor 
attention largely diverted to the strong and dramatic rebound in 
the offshore yuan currency.            
    The Hang Seng index  .HSI  added 1.3 percent, to 22,422.76 
points. The benchmark is poised to rise the most in six weeks if 
the market maintains gains in the afternoon session. The Hong 
Kong China Enterprises Index  .HSCE  rose 1.6 percent, to 
9,590.04 points. 
    The market drew some inspiration from continued strength in 
U.S. equities, amid sustained optimism that President-elect 
Donald Trump's fiscal stimulus promises would translate into 
faster U.S. economic growth.  
    Minutes from the Federal Reserve's December meeting showed 
that almost all Fed policymakers thought the economy could grow 
more quickly on Trump hopes and many were eyeing faster interest 
rate increases.  urn:newsml:reuters.com:*:nL1N1EU18J  
    The market also drew some support from improved conditions 
in Hong Kong's private sector as reflected by the Nikkei 
Purchasing Managers' Index (PMI), which in December recorded the 
first expansion in 22 months. 
    The Hong Kong survey followed encouraging manufacturing data 
earlier in the week from China and the United States which 
offered fresh signs of global economic recovery.  urn:newsml:reuters.com:*:nS7N14O00N    
  
    Nearly all sectors in Hong Kong advanced by the lunch break, 
with the biggest gain seen in the energy sector  .HSCIE , which 
jumped 3 percent.      
    Index heavyweight PetroChina Co Ltd  0857.HK  jumped nearly 
4.2 percent by midday, as oil managed to hold on to Wednesday's 
chunky gains.  urn:newsml:reuters.com:*:nL4N1EU14U 
     
    CHINA STOCKS  
    In China, the CSI300 index  .CSI300  was unchanged at 
3,367.19 points, while the Shanghai Composite Index  .SSEC  
gained 0.1 percent, to 3,162.37 points.  
    Investors' responses were muted towards a private survey 
showing that growth in China's services sector accelerated to a 
17-month high in December.  urn:newsml:reuters.com:*:nS7N17W02N 
    Much attention was on the Chinese currency, which rebounded 
sharply against the U.S. dollar in the offshore market 
overnight, as Beijing intervened, sparking speculation that it 
wants a firm grip on the currency ahead Trump's inauguration 
later this month.  urn:newsml:reuters.com:*:nL4N1EU2HJ 
    Sector performance in China was mixed, with strength in 
energy  .CSI300EN  countered by weakness in infrastructure 
stocks  .CSI300II . 
    The consumer staples sector  .CSICS  dipped around 0.5 
percent after a four-day winning streak as investors locked in 
profits.  
    An index tracking transportation stocks  .CSI300TRANS  edged 
lower after China said it would not increase its railway 
construction budget in 2017.  urn:newsml:reuters.com:*:nL5N1EU170 
 
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China stock market graphics suite     http://reut.rs/1NfkoGl 
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 (Reporting by Jackie Cai and John Ruwitch; Editing by 
Jacqueline Wong) 
 ((Jackie.Cai@thomsonreuters.com; +86 021 6104 1775;)) 
 
Keywords: CHINA STOCKS/MIDDAY