Hong Kong shares rise on vaccine hopes, Sino-U.S. tensions cap gains

** But the Hong Kong market is clouded by signs of deterioration in Sino-U.S. relationship as the U.S. Federal Communications Commission (FCC) begun the process of revoking China Telecom's authorization to operate in the United States. ** S&P Dow Jones Indices on Thursday became the second major index provider to remove some Chinese companies from its index products following a Trump administration executive order.

Hong Kong stocks tracked other Asian market higher as progress on COVID-19 vaccines boosted sentiment, although gains were capped due to a flare up in Sino-U.S. tensions. ** The Hang Seng index rose 0.4 to end at 26,505.87, while the China Enterprises Index gained 0.4% to 10,452.50.

** Asian markets were buoyed by optimism that imminent vaccinations would fuel economic recovery. U.S. authorities voted overwhelmingly to endorse emergency use of Pfizer's coronavirus vaccine, while doses of a COVID-19 vaccine made by China's Sinovac Biotech are rolling off a Brazilian production line. ** But the Hong Kong market is clouded by signs of deterioration in Sino-U.S. relationship as the U.S. Federal Communications Commission (FCC) begun the process of revoking China Telecom's authorization to operate in the United States.

** S&P Dow Jones Indices on Thursday became the second major index provider to remove some Chinese companies from its index products following a Trump administration executive order. FTSE Russell made a similar move last week, while rival index publisher MSCI is expected to follow suit. ** Hong Kong-listed shares of the U.S.-blacklisted companies, including CRRC, China Communications Construction Co and China State Constrution all fell on Friday.