China stocks climb on energy gains; Hong Kong falls

Wharf Real Estate Investment

06/01/2020 04:29

* SSEC 0.6%, CSI300 0.5%, HSI -0.7%
    * HK->Shanghai Connect daily quota used 2.5%, Shanghai->HK
daily
quota used 3%
    * FTSE China A50 +0.1%

    SHANGHAI, Jan 6 (Reuters) - China stocks started the week
higher on Monday, aided by strong gains for the country's oil
producers as oil prices extended gains on escalating Middle East
tensions. 
    ** The CSI300 index  .CSI300  rose 0.5% to 4,165.50 at the
end of the morning session, while the Shanghai Composite Index
 .SSEC  gained 0.6% to 3,101.98, its highest since April 29. 
    ** Iraq's parliament called on Sunday for U.S. and other
foreign troops to leave as a backlash grows against the U.S.
killing of a top Iranian general, and President Donald Trump
doubled down on threats to target Iranian cultural sites if
Tehran retaliates.  urn:newsml:reuters.com:*:nL1N29A0BF  urn:newsml:reuters.com:*:nL8N29A0OH
    ** For the short term, equities on the mainland and Hong
Kong could be under pressure from the rising Middle East
tensions, though the extent of any correction would be difficult
to "break" a recovery in the markets for the first quarter of
2019, Zhang Chi, an analyst with Western Securities, said in
report. 
    ** The correction pressure would be higher in Hong Kong than
in the A-share market, given the former' s stronger linkage with
the U.S. stock market, Zhang added. 
    ** China's Banking and Insurance Regulatory Commission said
in a document published on Friday that it would promote the
conversion of household savings into long-term funds in the
capital markets. Analysts say the move would bode well for the
country's capital market for the long run.  
    ** For the day, the A-shares got a strong boost from a rally
in energy giants as oil gains on rising Mideast tensions, with
index heavyweight PetroChina  601857.SS  surging as much as
5.5%.  urn:newsml:reuters.com:*:nL4N29B0HY 
    ** The CSI300 energy index  .CSI000908  gained 2.7% to a
six-month high, while the Hang Seng energy sub-index  .HSCIE 
added 2.5%.  
    ** China's services sector expanded at a slower pace in
December following a strong rebound in the previous month, with
business confidence falling to the second lowest on record
despite a pick-up in new orders, a private survey showed on
Monday.  urn:newsml:reuters.com:*:nZRN0004N3 
    ** On the trade front, the South China Morning Post reported
on Sunday a Chinese trade delegation plans to travel to
Washington on Jan. 13 for the signing of the U.S.-China Phase 1
trade deal.  urn:newsml:reuters.com:*:nFWN29A05P  
    ** In Hong Kong, stocks tracked weakness in other Asian
markets. 
    ** The Hang Seng index  .HSI  dropped 0.7%, to 28,261.56,
while the Hong Kong China Enterprises Index  .HSCE  lost 0.3%,
to 11,219.83.  
    ** Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  was weaker by 0.74% while Japan's Nikkei index
 .N225  was down 1.97%.
    ** The yuan  CNY=CFXS  was quoted at 6.9722 per U.S. dollar,
0.1% weaker than the previous close of 6.965. 
    ** As of 0403 GMT, China's A-shares were trading at a
premium of 27.62% over the Hong Kong-listed H-shares.

 (Reporting by Luoyan Liu and Brenda Goh; Editing by Rashmi
Aich)
 ((luoyan.liu@thomsonreuters.com; Reuters Messaging:
luoyan.liu.thomsonreuters.com@reuters.net))