Hong Kong stocks rise over 2% as consumer firms rally; China up

Shenzhou International group

11/08/2020 05:33

* SSEC 0.3%, CSI300 0.7%, HSI 2.4%
    * HK->Shanghai Connect daily quota used 5.6%, Shanghai->HK
daily
quota used 1.5%
    * FTSE China A50 +1.2%

    SHANGHAI, Aug 11 (Reuters) - Hong Kong shares rose the most
in more than a month on Tuesday, as investors scooped up
consumer stocks reliant on demand from mainland China amid signs
of a recovery in the world's second-largest economy and rising
Sino-U.S. tensions.  
    ** By the lunch break, the Hang Seng index  .HSI  was up
2.4% at 24,962.48 points, marking its biggest intraday
percentage rise since July 6. The Hong Kong China Enterprises
Index  .HSCE  firmed 2.3% to 10,217.11.
    ** Leading the gains, the Hang Seng consumer discretionary
index  .HSCICD  jumped as much as 3.1% to its highest in nearly
seven months, with Chinese hot-pot restaurant chain operator
Haidilao International Holding  6862.HK  surging 11.9% 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 in the world's
second-largest economy, 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 
    ** Market participants are relatively confident in China's
economic recovery, which is faster than other major economies,
Linus said. 
    ** By the midday break, the Shanghai Composite index  .SSEC 
firmed 0.33% to 3,390.37 points, while China's blue-chip CSI300
index  .CSI300  was up 0.66%.
    ** The tech-heavy start-up board ChiNext  .CNT  added 0.2%,
while the newly-launched STAR50  .STAR50  eased 1.2%. 
    ** Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  was firmer by 1.10%, while Japan's Nikkei index
 .N225  was up 1.77%.
    ** The yuan  CNY=CFXS  was quoted at 6.95 per U.S. dollar,
0.17% firmer than the previous close of 6.9621. 
    ** As of 0358 GMT, China's A-shares were trading at a
premium of 36.35% over the Hong Kong-listed H-shares.

 (Reporting by Luoyan Liu and Andrew Galbraith; Editing by
Aditya Soni)
 ((luoyan.liu@thomsonreuters.com; Reuters Messaging:
luoyan.liu.thomsonreuters.com@reuters.net))