HK shares post biggest gains since Feb on Spain, China data
HONG KONG, June 11 |
HONG KONG, June 11 (Reuters) - Hong Kong shares rebounded on Monday amid a broad rally across Asia as a bailout for Spanish banks and China economic data that was not as bad as feared prompted offshore investors to cover short positions.
The Hang Seng index rose 2.4 percent to 18,953.6 points, posted its biggest one-day percentage gain since Jan 17. The China Enterprises index of top locally listed mainland firms also rose 2.4 percent.
In China, the Shanghai Composite rose 1.1 percent while the large-cap focused CSI 300 rose 1.3 percent.
* HSBC Holdings jumped 3 percent and was the biggest boost for the Hang Seng as the Spanish bank agreement lifted European lenders. Standard Chartered shares rose 3.1 percent.
* Bearish investors covered short positions in Hong Kong, boosting shares of cyclical sectors, such as materials, shipping and energy, which have borne the brunt of the selloff in recent weeks on the back of weakening global and domestic demand in China.
Among the top gainers, shipping firms China Cosco soared 10.7 percent while China Shipping both gained 8.6 percent. China Shipping shares are recovering from an 8-year low hit last week.
* Strong data on new loans for May in China that came in above expectations could support banking shares and the broader market on Tuesday. The numbers, released just before the closing bell in Hong Kong, showed new loans in China totaled 793.2 billion yuan ($125 billion) compared with a forecast for 720 billion yuan ($113 billion).
($1 = 6.3705 Chinese yuan) (Reporting by Vikram Subhedar)
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