Hong Kong stocks climb after strong U.S., China data

Hong Kong stocks ended higher on Monday, tracking gains in other Asian markets after strong U.S. first-quarter economic growth and data showing profits at Chinese industrial firms grew for the first time in four months.

** The Hang Seng index rose 1.0 per cent, to 29,892.81 while the China Enterprises Index gained 1.1 per cent, to 11,638.18. ** U.S. economic growth accelerated in the first quarter, but the burst in growth was driven by a smaller trade deficit and the largest accumulation of unsold merchandise since 2015, temporary boosters that are seen weighing on the economy later this year.

** In China, fresh data showed industrial profits grew in March after four months of contraction, but analysts said sentiment remained fragile. Economists polled by Reuters expect factory activity in the world's second-largest economy to grow at a steady but modest pace in April. ** All eyes were on progress in Sino-U.S. trade negotiations.

** U.S. negotiators head to China on Tuesday to try to hammer out details to end the two countries' trade war, including the shape of an enforcement mechanism, the success or failure of which could set the trajectory of ties for years to come. ** Around the region, MSCI's Asia ex-Japan stock index rose 0.54 per cent.

** The yuan was quoted at 6.7351 per U.S. dollar at 08:14 GMT, 0.08 per cent weaker than the previous close of 6.73. ** The top gainers among H-shares were China Railway Group Ltd, up 4.11 per cent, followed by Air China Ltd, up 3.64 per cent and CSPC Pharmaceutical Group Ltd, up 3.39 per cent.

** The three biggest H-shares percentage decliners were New China Life Insurance Co Ltd, down 2.72 per cent, Haitong Securities Co Ltd, down 1.7 per cent and Huatai Securities Co Ltd, down 1.3 per cent. ** About 1.29 billion Hang Seng index shares were traded, roughly 73.9 per cent of the market's 30-day moving average of 1.75 billion shares a day. The volume traded in the previous session was 1.45 billion. At close, China's A-shares were trading at a premium of 24.72 per cent over the Hong Kong-listed H-shares.