Hong Kong stocks rise as mixed data confuses investors

Hong Kong stocks edged higher on Thursday after China reported stronger-than-expected investment in its slowing economy, but a weaker industrial output growth limited the gains. The Hang Seng index ended 0.2 per cent higher at 28,851.39 points. The Hang Seng China Enterprises index rose 0.4 percent. The sub-index of the Hang Seng tracking energy shares rose 1.7 per cent, while the IT sector dipped 0.8 per cent, the financial sector ended 0.1 per cent higher and the property sector lost 0.3 per cent.'

China's industrial output rose 5.3 per cent in the first two months of the year, the National Bureau of Statistics said, less than expected and the slowest pace since early 2002. However, investment picked up speed as the government fast-tracked more road and rail projects, and more monetary policy support is expected this year. U.S. President Donald Trump said on Wednesday he was in no rush to complete a trade pact with China, including protection for intellectual property, a major sticking point between the two sides during months of negotiations. China's main Shanghai Composite index closed down 1.2 per cent at 2,990.69 points, while the blue-chip CSI300 index ended down 0.7 per cent.

Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.1 per cent, while Japan's Nikkei index closed pretty much flat. The top gainer on the Hang Seng was CNOOC Ltd, which gained 3.8 per cent, while the biggest loser was Sunny Optical Technology Group Co Ltd, which fell 3.3 per cent. The top gainers among H-shares were China Gas Holdings Ltd, Air China Ltd and CNOOC Ltd, all up by 3.8 per cent.

About 1.43 billion Hang Seng index shares were traded. The volume traded in the previous session was 1.22 billion. At the close, China's A-shares were trading at a premium of 22.08 per cent over the Hong Kong-listed H-shares. The short and one-factor leveraged Hang Seng index, which is designed to replicate the pay-off of a short or leveraged portfolio and is linked to the movements of the Hang Seng Index, was 0.15 per cent lower on the day at 4,768.92 points.