Hong Kong stocks end higher, Sino-U.S. tensions cap gains

Hong Kong shares closed higher on Monday as cyclical stocks rose on hopes of a vaccine-led recovery, although Sino-U.S. tensions capped gains. ** The Hang Seng index ended up 34.66 points, or 0.13%, at 26,486.20. The Hang Seng China Enterprises index rose 1.07% to 10,666.53.

Hong Kong shares closed higher on Monday as cyclical stocks rose on hopes of a vaccine-led recovery, although Sino-U.S. tensions capped gains.

** The Hang Seng index ended up 34.66 points, or 0.13%, at 26,486.20. The Hang Seng China Enterprises index rose 1.07% to 10,666.53. ** The Hang Seng materials, industrials and energy indexes led the gains, rising 4.6%, 2.3% and 3.5%, respectively.

** A top official of the U.S. government's vaccine development effort said the first vaccines could be given to U.S. healthcare workers and others by mid-December. ** The vaccine progress brought hopes of economic recovery, which further provided support for the market, CITIC Securities analysts noted in a report.

** The brokerage recommended sectors including automakers, cement, real estate that benefit from improving domestic consumption, and banking and insurance names with low valuations. ** But, investors were cautious on fresh tensions between Washington and Beijing.

** The Trump administration is looking at moves that would restrict 89 Chinese aerospace and other companies from buying a range of U.S. goods and technology, according to a draft copy of the list of firms seen by Reuters. ** A two-star Navy admiral overseeing U.S. military intelligence in the Asia-Pacific region made an unannounced visit to Taiwan, two sources told Reuters on Sunday, in a high-level trip that could vex China.

** Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.83%, while Japan's Nikkei index closed down 0.42%. ** The yuan was quoted at 6.5694 per U.S. dollar at 0812 GMT, 0.11% weaker than the previous close of 6.5622.

** At close, China's A-shares were trading at a premium of 42.74% over Hong Kong-listed H-shares.