HK stocks drift higher on US rate outlook; China banks hit record peaks

JD Health International

19/08/2024 09:28

(Updates prices)
       SINGAPORE, Aug 19 (Reuters) - Hong Kong stocks led gains
in Asia on Monday, supported by the prospect of the U.S. economy
likely dodging a recession, while signs of state support lifted
Shanghai-listed banks to record highs.
    
** Hong Kong's Hang Seng Index  .HSI  closed 0.8% higher to
17,569.57. 
    
** The Shanghai Composite index  .SSEC  rose 0.49% to 2,893.67.
** MSCI's Asia ex-Japan stock index  .MIAPJ0000PUS  advanced
0.8%, while Japan's Nikkei index  .N225  fell 1.8% as the yen
rose sharply.
** China's blue-chip CSI300 index  .CSI300  climbed 0.34%, with
its banking sub-index  .CSI399986  up 1.9%, its largest one-day
percentage rise in six months.
    
** Shanghai-listed shares of Agriculture Bank of China
 601288.SS  hit a record high. The Industrial and Commercial
Bank of China  601398.SS , the country's biggest lender, rose 2%
and was set for a ninth consecutive session of gains.

** Investors are lured by generous dividend payouts by Chinese
banks and heavy inflows into a handful of blue-chip
exchange-traded funds (ETF) used by state-backed funds also
boosted sentiment.
    
** Gold miners including Chifeng Jilong  600988.SS , Hunan Gold
Corp  002155.SZ  and Zhongjin Gold  600489.SS  jumped after
bullion prices hovered near record peaks.
    
** *The top gainer among H-shares was JD Health International
Inc  6618.HK , gaining 7.93% as positive results at JD.com
 9618.HK  last week buoyed sentiment about the group.
    
** "We don't see any particular change of the sentiment of the
market, or investors. Their view is still quite worried about
the economy and the property market," said Steven Leung, UOB Kay
Hian's executive director.

** U.S. rate cuts are eagerly awaited, said Leung, as Hong
Kong's financial system is tied to U.S. rates by the Hong Kong
dollar peg. 
    
** U.S. Federal Reserve chair Jerome Powell speaks in Jackson
Hole on Friday. Investors assume he will acknowledge the case
for a cut.
** ** The yuan  CNY=CFXS  was quoted at 7.1388 per U.S. dollar,
0.29% firmer than the previous close of 7.1595.
** So far this year, the Shanghai stock index is down 2.7% and
the CSI300 has fallen 2.2%.
    


 (Reporting by Tom Westbrook; Editing by Sherry Jacob-Phillips
and Janane Venkatraman)
 ((tom.westbrook@tr.com; +65 6973 8284;))