HK stocks end at 3-week high on bargain hunting

China Resources Gas

12/12/2019 08:49

* HK->Shanghai Connect daily quota used 8.8%, Shanghai->HK
daily
quota used 0.9%
    * HSI +1.3%, HSCE +1.1%, CSI300 -0.3%
    * FTSE China A50 -0.3%

    SHANGHAI, Dec 12 (Reuters) - Hong Kong shares on Thursday
hit their highest close in more than three weeks, as investors
sought bargains in IT and consumer stocks amid strength in the
local currency.  

    ** The Hang Seng index  .HSI  was up 1.3% at 26,994.14, its
highest close since Nov. 19, while the China Enterprises Index
 .HSCE  closed 1.1% firmer at 10,614.76. 
    ** The Hong Kong dollar  HKD=D3  strengthened to a
five-month high on Thursday, with some analysts attributing the
gains to profit-taking as investors unwind lucrative "carry"
trades ahead of the year-end.  urn:newsml:reuters.com:*:nL4N28M0YD  
    ** Such trades involve borrowing in places with low interest
rates, such as Hong Kong, to fund the purchase of potentially
higher-yielding assets denominated in U.S. dollars.
    ** Fitch Ratings said Hong Kong's role in global finance
remains intact despite unrest.  urn:newsml:reuters.com:*:nFWN28L0VB 
    ** A calm in the social unrest in the Asian financial hub
and optimism over Sino-U.S. trade talks also fuelled some buying
interest for some major blue chips, in particular those which
have fallen quite a bit in the past, said Steven Leung with UOB
Kay Hian in Hong Kong.  
    ** Traders are bracing for a series of make-or-break events
over the next few days that have the potential to cause huge
swings in financial markets for months to come.
    ** China and the United States are in close communication on
trade, its commerce ministry said on Thursday, declining to
comment on possible retaliatory steps if Washington imposes more
tariffs on Chinese goods this weekend.  urn:newsml:reuters.com:*:nL4N28M245 
    ** U.S. President Donald Trump is expected to meet with top
trade advisers on Thursday to discuss planned Dec. 15 tariffs on
some $160 billion in Chinese goods, three sources familiar with
the plans said, as markets braced for potential negative
impacts.  urn:newsml:reuters.com:*:nL1N28L2BW  
    ** Gains in the index were underpinned by IT  .HSCIIT  and
consumer shares  .HSCICD , with Tencent  0700.HK  and Wynn Macau
 1128.HK  closing up 2.7% and 4.7%, respectively. 
    ** Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  was firmer by 0.96%, while Japan's Nikkei index
 .N225  closed up 0.14%.
    ** The yuan  CNY=CFXS  was quoted at 7.0321 per U.S. dollar
at 0810 GMT, 0.09% firmer than the previous close of 7.0386. 
    ** At close, China's A-shares were trading at a premium of
26.73% over Hong Kong-listed H-shares.

 (Reporting by the Shanghai Newsroom, Editing by Sherry
Jacob-Phillips)
 ((luoyan.liu@thomsonreuters.com; Reuters Messaging:
luoyan.liu.thomsonreuters.com@reuters.net))