Tech firms power Hong Kong stocks to 6-week high amid trade optimism

Hengan International

28/10/2019 08:35

* HK->Shanghai Connect daily quota used 3.9%, Shanghai->HK
daily
quota used 4.6%
    * HSI +0.8%, HSCE +1.0%, CSI300 +0.8%
    * FTSE China A50 +0.2%,

    Oct 28 (Reuters) - Hong Kong stocks closed at a six-week
peak on Monday, boosted by gains in tech firms and as investors
cheered progress in Sino-U.S. trade talks.  
    ** The Hang Seng index  .HSI  rose 0.8% to 26,891.26, its
highest closing level since Sept. 16, while the China
Enterprises Index  .HSCE  climbed 1.0% to 10,569.82.   
    ** U.S. and Chinese officials are "close to finalizing" some
parts of a trade agreement after high-level telephone
discussions on Friday, the U.S. Trade Representative's office
and China's Commerce Ministry said, with talks to continue.
 urn:newsml:reuters.com:*:nL2N27A0U9 
    ** Washington and Beijing are working to agree on the text
for a "Phase 1" trade agreement announced by U.S. President
Donald Trump on Oct. 11. Trump has said he hopes to sign the
deal with China's President Xi Jinping next month at a summit in
Chile.  
    ** On Monday, tech firms led the gains as Beijing signalled
more support for the sector amid the protracted trade war,
including passing a new law on cryptography to gear up for the
launch of China's own digital currency.  urn:newsml:reuters.com:*:nL4N27C00C
 urn:newsml:reuters.com:*:nL4N27C02X 
    ** The Hang Seng information technology index  .HSCIIT 
closed 2% higher, with industry bellwether Meituan Dianping
 3690.HK  rising 3.5%. 
    ** Concerns over the economic health of the island city amid
months-long protests persisted, though they were partly offset
by hopes of more stimulus to arrest faltering growth. 
    ** Hong Kong has fallen into recession, hit by more than
five months of anti-government protests that show no signs of
relenting, and is unlikely to achieve any growth this year, the
city's Financial Secretary said.  urn:newsml:reuters.com:*:nL3N27D056  
    ** Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  was firmer by 0.47%, while Japan's Nikkei index
 .N225  closed up 0.3%.
    ** The yuan  CNY=CFXS  was quoted at 7.0605 per U.S. dollar
at 08:15 GMT, 0.06% firmer than the previous close of 7.0647. 
    ** About 1.48 billion Hang Seng index shares were traded,
roughly 103.1% of the market's 30-day moving average of 1.43
billion shares a day. The volume traded in the previous trading
session was 1.15 billion.
    ** At close, China's A-shares were trading at a premium of
29.45% over Hong Kong-listed H-shares.

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