Hong Kong shares rise on upbeat China factory data, vaccine hopes
** At the close of trade, the Hang Seng index was up 226.19 points, or 0.86%, at 26,567.68. The Hang Seng China Enterprises index rose 1.07% to 10,659.64. ** China's main Shanghai Composite index closed up 1.77% at 3,451.94 points, while the blue-chip CSI300 index ended up 2.15%.Reuters | Updated: 01-12-2020 14:10 IST | Created: 01-12-2020 14:10 IST
Hong Kong shares rose on Tuesday after data showed rapid acceleration in factory activity in China, as the world's second-largest economy rebounded to pre-pandemic levels, and as investors continued to hope for a COVID-19 vaccine.
** China's factory sector activity grew at its fastest pace in a decade in November, a survey showed. ** Sentiment was also lifted after Moderna Inc said on Monday it had applied for U.S. emergency authorisation for its COVID-19 vaccine as full results from a late-stage study showed it was 94.1% effective with no serious safety concerns. ** At the close of trade, the Hang Seng index was up 226.19 points, or 0.86%, at 26,567.68. The Hang Seng China Enterprises index rose 1.07% to 10,659.64. ** The sub-index of the Hang Seng tracking the IT sector rose 0.72%, the financial sector ended 1.69% higher and the property sector rose 0.34%. ** Lagging property firms mirrored weak sector gains in mainland markets, after a private survey showed Chinese new home prices growth eased slightly in November, weighed by tighter market curbs in larger cities and increased demand weakness in smaller towns. ** China's chief banking regulator warned that the property market is the country's biggest "grey rhino" - a very obvious yet ignored threat - in terms of financial risks, given it is so deeply intertwined with the financial industry. ** China's main Shanghai Composite index closed up 1.77% at 3,451.94 points, while the blue-chip CSI300 index ended up 2.15%. ** Around the region, MSCI's Asia ex-Japan stock index was 2.1% weaker, while Japan's Nikkei index closed up 1.34%. ** The yuan was quoted at 6.5698 per U.S. dollar at 08:12 GMT, 0.14% firmer than the previous close of 6.5792.
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