January 10, 2019 / 9:03 AM / 2 months ago

Hong Kong stocks climb on dovish Fed, yuan rally

* HSI +0.2 pct, HSCE +0.4 pct; up for 5th straight day

* Federal Reserve minutes hint at pause in rate hike path

* Yuan jumps to 5-1/2-month high as the greenback falters

HONG KONG, Jan 10 (Reuters) - Hong Kong shares rose for the fifth straight day on Thursday, as a cautious U.S. Federal Reserve and a firmer yuan lifted market sentiment. ** At the close of trade, the Hang Seng index was up 0.2 percent at 26,521.43 points. The Hang Seng China Enterprises index rose 0.4 percent. ** Investors were encouraged after Fed minutes revealed on Wednesday that the U.S. central bank is willing to wait before delivering more rate hikes, said Patrick Yiu, managing director at CASH Asset Management in Hong Kong. ** Yiu added that many Chinese companies listed in Hong Kong were bolstered by a rallying yuan, which was quoted at 6.7895 per U.S. dollar at 08:09 GMT, 0.41 percent firmer than the previous close of 6.8175. ** The Chinese currency rose to its highest point in five and a half months on Thursday, thanks to a weaker dollar and positive sentiments following the conclusion of the three-day U.S.-China trade talks. ** But overall, “people in the market are mostly cautious at this juncture” as Fed Chairman Jerome Powell is due to speak on Thursday Eastern Time, and as U.S. companies get ready to report their 2018 fourth quarter earnings in the coming week, said Yiu. ** “Financial companies probably did not do well in the fourth quarter, and energy companies were hurt by oil prices coming down last year,” he said. ** Meanwhile, China reported that producer prices in December rose at their slowest pace since September 2016 as factories confront a slowdown in demand even as Beijing steps up policy support to bolster the economy. ** China’s main Shanghai Composite index closed down 0.4 percent at 2,535.10 points, while the blue-chip CSI300 index ended down 0.2 percent. ** The sub-index of the Hang Seng tracking energy shares rose 0.6 percent, while the IT sector rose 0.2 percent, the financial sector ended 0.1 percent higher and the property sector eased 0.3 percent. ** The top gainer on Hang Seng was Sino Biopharmaceutical Ltd , with shares gaining 11.6 percent, while the biggest loser was AAC Technologies Holdings Inc’s stock, which fell 2.1 percent. ** Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.3 percent, while Japan’s Nikkei index closed down 1.3 percent. ** The top gainers among H-shares were CSPC Pharmaceutical Group Ltd up 7.6 percent, followed by Guangzhou Automobile Group Co Ltd, gaining 7.1 percent and Great Wall Motor Co Ltd, up by 4.5 percent. ** The three biggest H-shares percentage decliners were China Tower Corp Ltd, which was down 2.6 percent, Postal Savings Bank of China Co Ltd and Byd Co Ltd, both down by 1.9 percent. ** Close to 2 billion Hang Seng index shares were traded. The volume traded in the previous trading session was 2.76 billion. ** At close, China’s A-shares were trading at a premium of 17.44 percent over the Hong Kong-listed H-shares. ** The short and one-factor leveraged Hang Seng index, which is designed to replicate the payoff of a short or leveraged portfolio and is linked to the movements of the Hang Seng Index, was lower by 0.22 percent on the day at 5,216.74 points. (Reporting by Noah Sin; Editing by Rashmi Aich)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below