Hong Kong stocks mark best day in two months as inflation worries ease

Nongfu Spring

25/05/2021 09:43

* HK->Shanghai Connect daily quota used 35.2%, Shanghai->HK
daily
quota used 8.5%
    * HSI +1.8%, HSCE +1.4%, CSI300 +3.2%
    * FTSE China A50 +4.2%

    May 25 (Reuters) - Hong Kong stocks rose on Tuesday, posting
their best session in nearly two months, as fears around
inflation faded, while solid gains on the mainland also boosted
risk appetite.   
    ** At the close of trade, the Hang Seng index  .HSI  was up
1.75% at 28,910.86, marking its biggest daily percentage gain
since April 1. The Hang Seng China Enterprises index  .HSCE 
rose 1.42% to 10,792.63.
    ** The sub-index of the Hang Seng tracking energy shares
 .HSCIE  rose 1.2%, while the IT sector  .HSCIIT  rose 1.97%,
the financial sector  .HSNF  ended 1.42% higher and the property
sector rose 0.6%.
    ** The top gainer on the Hang Seng was WuXi Biologics
(Cayman) Inc  2269.HK , which gained 5.92%, while the biggest
loser was Sino Biopharmaceutical Ltd  1177.HK , which fell
2.87%. 
    ** Beijing has vowed to maintain stability in the country's
commodities markets after prices rallied earlier this year,
decreasing inflation fears.
    ** In the latest move, China's market regulators warned
industrial metal companies to maintain "normal market order"
during talks on the sharp price gains.  urn:newsml:reuters.com:*:nL2N2NB01L   
    ** Inflation fears also faded overseas. The U.S. national
activity index reading of 0.24 against expectations above 1,
along with dovish comments from Federal Reserve speakers,
supported the view that policy will remain on hold for some
time.  urn:newsml:reuters.com:*:nL2N2NC03L 
    ** China's main Shanghai Composite index  .SSEC  closed up
2.4% at 3,581.34 points, while the blue-chip CSI300 index
 .CSI300  ended up 3.16%. 
    ** On Tuesday, mainland investors purchased a net 8.7
billion yuan worth of Hong Kong shares via the Stock Connect
linking the mainland and Hong Kong, Refinitiv data showed.  
    ** Shares of Xiaomi Corp  1810.HK  closed up 4.1%, after
index provider FTSE Russell said it would add the company back
to its global indexes.  urn:newsml:reuters.com:*:nB9N2DV00B 
    ** Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  was firmer by 1.43%, while Japan's Nikkei index
 .N225  closed up 0.67%. 

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