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HK stocks rise as fresh trade talk possibility eases Wall St worries

Updated: 13-11-2018 14:31 IST
Stocks in Hong Kong rose on Tuesday as Beijing and Washington are said to be preparing for fresh trade talks, helping investors overcome the overnight rout in the U.S. markets. ** The Hang Seng index gained 0.6 percent to 25792.87 and the Hang Seng China Enterprises index edged up 0.4 percent. ** The sub indices for the financial sector rose by 0.5 percent and the property sector was 0.6 percent higher. ** The market was lacklustre in the morning, treading in the negative territory by midday. But as the news of Chinese vice premier Liu He visiting the U.S. trickled in, investors became more optimistic across the board. ** The rebound also lifted technology stocks, which were battered overnight on Wall Street, with Apple Inc leading the losses after the company's supplies issued warnings on results. ** But Steven Leung, director of sales at UOB Kay Hian in Hong Kong, casts doubt on how long the tech rally will last. ** "These investors are buying because of news, they are not long-term money," he said. "There's a lot of short covering going on, and tech stocks have been shorted a lot recently. This is a technical rebound from a very low point." ** Participants in Hong Kong shares will keep a close eye on the quarterly results of Tencent Holdings on Wednesday. The company's shares rose 1.5 percent on Tuesday, after heavy losses in the past two sessions on the back of weak earnings expectations. ** Energy stocks, however, bucked the rising trend in most of the market. The Hang Seng's energy sub index closed down 1.6 percent. Chinese state-owned China National Offshore Oil Corporation Ltd's stock, which fell 3.1 percent, was the worst performer in the Hang Seng. ** Oil prices were lacklustre after U.S. President Donald Trump expressed support for lower prices and asked the Organization of the Petroleum Exporting Countries (OPEC) to refrain from cutting production in 2019. ** The sector is likely to be placed under continued pressure as oil prices stay low. "Trump does not want oil price to rise quickly as that will push up inflation in the U.S.," Leung added. ** The top gainer on the Hang Seng was Geely Automobile Holdings Ltd, up 4.7 percent. Other top gainers among H-shares were Air China Ltd, up 3.7 percent, followed by China Huarong Asset Management Co Ltd, up by 2.7 percent, and Great Wall Motor Co Ltd, which rose 2.6 percent. ** Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.2 percent, while Japan's Nikkei index closed down 2.1 percent. ** The yuan was quoted at 6.9531 per U.S. dollar at 0825 GMT, 0.16 percent firmer than the previous close of 6.9644. The yuan steadied as state-owned banks sold dollars around 6.97 earlier on Tuesday. ** At close, China's A-shares were trading at a premium of 18.31 percent over the Hong Kong-listed H-shares. ** The Hang Seng is up 3.3 percent so far this month, after losing 10 percent in October. The index for H-shares have gained 3.4 pct in the same period, having shed 8 percent last month.

(Reporting by Noah Sin; Editing by Rashmi Aich)

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)