Hong Kong shares end higher as consumer stocks rally on strong China demand

Hengan International

11/08/2020 09:54

* HK->Shanghai Connect daily quota used 6.2%, Shanghai->HK
daily
quota used 1.7%
    * HSI +2.1%, HSCE +1.6%, CSI300 -0.9%
    * FTSE China A50 -0.2%

    Aug 11 (Reuters) - Hong Kong stocks ended higher on Tuesday,
led by strong gains for consumer firms, as they were expected to
be less impacted by the Sino-U.S. tensions. 
    ** Snapping a three-day losing streak, the Hang Seng index
 .HSI  rose 2.1% to close at 24,890.68, while the China
Enterprises Index  .HSCE  gained 1.6%, to 10,153.40.   
    ** Leading the gains, the Hang Seng consumer discretionary
index  .HSCICD  ended 3% higher at a near seven-month peak, with
Chinese hot-pot restaurant chain operator Haidilao International
Holding  6862.HK  surging 13% to a record peak. 
    ** "Investors are shifting their focus to consumer players
that benefit from China's robust domestic demand, as they are
less impacted by the Sino-U.S. tensions," said Linus Yip, chief
strategist at First Shanghai Group.
    ** China is looking to reduce its reliance on overseas
markets and technology for its economic development, government
advisers say, as U.S. hostility and a pandemic increase external
risks that could hamper longer-term progress.  urn:newsml:reuters.com:*:nL3N2F307Y 
    ** Adding to signs of a recovery, data on Monday showed
China's factory deflation eased in July as global oil prices
rose and industrial activity climbed back towards
pre-coronavirus levels.  urn:newsml:reuters.com:*:nL4N2F80DD 
    ** China imposed sanctions on 11 U.S. citizens, including
lawmakers from President Donald Trump's Republican Party, on
Monday in response to Washington's imposition of sanctions on
Hong Kong and Chinese officials accused of curtailing political
freedoms in the former British colony.  urn:newsml:reuters.com:*:nL4N2FC1L7 
    ** Investors are awaiting a meeting between top U.S. and
Chinese trade officials on Saturday to review the first six
months of the Phase 1 trade deal. 
    ** Goods made in Hong Kong for export to the United States
will need to be labelled as made in China after Sept. 25,
according to a U.S. government notice posted on Tuesday.
 urn:newsml:reuters.com:*:nL4N2FD1LY 
    ** Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  was firmer by 0.57%, while Japan's Nikkei index
 .N225  closed up 1.88%.

 (Reporting by the Shanghai Newsroom)
 ((luoyan.liu@thomsonreuters.com; Reuters Messaging:
luoyan.liu.thomsonreuters.com@reuters.net))