HK stocks end firmer as China data lifts risk appetite

Sino Land

02/12/2019 08:52

* HK->Shanghai Connect daily quota used 4.1%, Shanghai->HK
daily
quota used 4.1%
    * HSI +0.4%, HSCE +0.6%, CSI300 +0.2%
    * FTSE China A50 +0.2%

    Dec 2 (Reuters) - Stocks in Hong Kong ended higher on
Monday, boosted by upbeat factory data on the mainland, while
cloudy outlook over a Sino-U.S. interim trade deal and
pro-democracy protests in the Asian financial hub kept gains in
check. 
    ** The Hang Seng index  .HSI  ended 0.4% firmer at
26,444.72, while the China Enterprises Index  .HSCE  gained 0.6%
to 10,363.91.
    ** Sentiment got a lift after official data showed factory
activity in China unexpectedly returned to growth in November
for the first time in seven months, as domestic demand picked up
on Beijing's accelerated stimulus measures to steady growth.
 urn:newsml:reuters.com:*:nL4N2891KL
    ** The market also enjoyed a boost after the Caixin/Markit
Manufacturing Purchasing Managers' Index (PMI) index rose to
51.8 in November from 51.7 in the previous month, marking the
fastest expansion since December 2016.
    ** However, worries persisted over the prospects of a
proposed Sino-U.S. trade deal, as tensions between the world's
two largest economies escalated after Washington signed a
legislation backing Hong Kong's pro-democracy protesters. 
    ** Beijing's top priority in any "phase one" trade deal is
the removal of existing tariffs on Chinese goods, China's Global
Times newspaper reported on Sunday.  urn:newsml:reuters.com:*:nL4N28B01A 
    ** However, a trade deal was now "stalled because of Hong
Kong legislation", news website Axioms reported on Sunday,
citing a source close to U.S. President Donald Trump's
negotiating team.  urn:newsml:reuters.com:*:nFWN28A00L 
    ** China's Foreign Ministry said on Monday it has suspended
the review of requests by U.S. military ships and aircraft to
visit Hong Kong in response to legislation passed by U.S.
lawmakers in support of protesters in the China-ruled territory.
 urn:newsml:reuters.com:*:nB9N282017  
    ** Hundreds of office workers in Hong Kong's business
district gathered on Monday for the first in a week of lunchtime
protests backing the movement after its resounding victory in
district polls held last week in the Chinese-ruled city.
 urn:newsml:reuters.com:*:nL4N28C1B1  
    ** Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  was firmer by 0.19%, while Japan's Nikkei index
 .N225  closed up 1.01%.
    ** The yuan  CNY=CFXS  was quoted at 7.041 per U.S. dollar
at 0811 GMT, 0.13% weaker than the previous close of 7.032. 
    ** At close, China's A-shares were trading at a premium of
28.78% over Hong Kong-listed H-shares.

 (Reporting by the Shanghai Newsroom, Editing by Sherry
Jacob-Phillips)
 ((luoyan.liu@thomsonreuters.com; Reuters Messaging:
luoyan.liu.thomsonreuters.com@reuters.net))