Hong Kong stocks post best month in six as upbeat data boosts recovery hope

Want Want China Holdings

30/06/2020 09:44

* HK->Shanghai Connect daily quota used 100%, Shanghai->HK
daily
quota used 5.2%
    * HSI +0.5%, HSCE +0.0%, CSI300 +1.3%
    * FTSE China A50 +0.8%

    June 30 (Reuters) - Hong Kong stocks firmed on Tuesday to
post their best month in six, as upbeat U.S. and Chinese data
renewed hopes for economic recovery and offset worries about
U.S. sanctions against the city over Beijing's national security
law. 
    ** At the close of trade, the Hang Seng index  .HSI  was up
125.91 points or 0.52% at 24,427.19. The Hang Seng China
Enterprises index  .HSCE  rose 0.01% to 9,758.63.
    ** Hong Kong stock market will be closed on Wednesday for
Hong Kong Special Administrative Region Establishment Day. 
    ** For the month, HSI gained 6.4%, its best one since
December 2019, while HSCE rose 2.1%. 
    ** Washington moved to suspend Hong Kong's preferential
treatment under the U.S. law, punishing China, which on Tuesday
passed national legislation for the former British colony.
Pro-democracy activists and some western governments say the law
will erode Hong Kong's high degree of freedom. 
    ** "What matters most importantly is stability, the notion
that the year forward might have less social unrest than the
year passed," Eric Moffett, portfolio manager at T. Rowe Price,
told a media call, adding that cheap valuations are also
supportive of the Hong Kong stock market. 
    ** Investors cheered overnight Wall Street gains on strong
U.S. housing data, as well as China's announcement of a
cross-border wealth management scheme linking Hong Kong, Macau,
and their neighbouring cities on the mainland.  urn:newsml:reuters.com:*:nL4N2E61AY 
    ** The sentiment was also boosted by data showing China's
manufacturing sector grew more than expected in June. The
official manufacturing Purchasing Manager's Index (PMI) came in
at 50.9 in June, compared with May's 50.6.  urn:newsml:reuters.com:*:nL4N2E627S   
    ** Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  was firmer by 0.69%, while Japan's Nikkei index
 .N225  closed up 1.33%.
    ** The yuan  CNY=CFXS  was quoted at 7.0714 per U.S. dollar
at 08:14 GMT, 0.12% firmer than the previous close of 7.08. 
    ** At close, China's A-shares were trading at a premium of
28.57% over Hong Kong-listed H-shares.

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