HK stocks end firmer as markets cheer positive trade-deal signals

Guangdong Investment

25/11/2019 08:35

* HK->Shanghai Connect daily quota used 8.2%, Shanghai->HK
daily
quota used 1.9%
    * HSI +1.5%, HSCE +1.2%, CSI300 +0.7%
    * FTSE China A50 +1.0%

    Nov 25 (Reuters) - Hong Kong stocks closed higher on Monday
as investors cheered signs of headway in the trade negotiations
between Washington and China, following upbeat comments from
both countries. 
    ** The Hang Seng index  .HSI  ended 1.5% firmer at
26,993.04, while the China Enterprises Index  .HSCE  closed up
1.2% at 10,628.88.   
    ** The leaders of the United States and China on Friday
underscored their desire to sign an initial trade deal and
defuse a 16-month tariff war that has lowered global growth,
providing a welcome boost to financial markets.  urn:newsml:reuters.com:*:nL3N2821H4 
    ** Investors welcomed signs that talks to resolve the trade
row were moving to the next level when U.S. national security
adviser Robert O'Brien said that an initial agreement is still
possible by the end of the year, but warned Washington would not
turn a blind eye to what happens in Hong Kong.  urn:newsml:reuters.com:*:nL1N2830Q1 
    ** The comments add to worries that a Chinese crackdown on
anti-government protests in Hong Kong could further complicate
the talks.
    ** China and the United States are "very close" to a 'phase
one' trade deal, the Global Times, a tabloid run by the ruling
Communist Party's official People's Daily, said on Monday,
discounting "negative" media reports.  urn:newsml:reuters.com:*:nL4N2851GS 
    ** Closer home, Hong Kong's democrats scored a landslide
majority in district council elections, which saw a record
turnout after six months of anti-government protests, increasing
pressure on the Chinese-ruled city's leader on Monday to listen
to calls for democracy.  urn:newsml:reuters.com:*:nL4N28412F
    ** The elections, or at least their smooth holding, helped
lift market sentiment, said Linus Yip, a Hong Kong-based analyst
with First Shanghai Securities, adding positive comments over
the weekend on the trade talks were also a boost. 
    ** Liquidity conditions for the market would also improve as
funds frozen for the subscription of Alibaba's share sale will
flow back, as the e-commerce giant is due to start trading on
Tuesday in Hong Kong, he said. 
    ** Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  was firmer by 0.69%, while Japan's Nikkei index
 .N225  closed up 0.78%.
    ** The yuan  CNY=CFXS  was quoted at 7.0325 per U.S. dollar
at 0811 GMT, 0.11% firmer than the previous close of 7.0405. 
    ** About 1.50 billion Hang Seng index shares were traded, in
line with the market's 30-day moving average of 1.50 billion
shares a day. The volume traded in the previous trading session
was 1.10 billion.
    ** At close, China's A-shares were trading at a premium of
27.89% 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))