June 19, 2019 / 8:35 AM / 2 months ago

Hong Kong stocks post best day in 7 months on trade talk, easing hopes

* HK->Shanghai Connect daily quota used 4.3%, Shanghai->HK daily quota used -0.1%

* HSI +2.6%, HSCE +2.5%, CSI300 +1.3%

* FTSE China A50 +1.3%

June 19 (Reuters) - Hong Kong stocks on Wednesday posted their best session since November 2018 as mood turned optimistic about Sino-U.S. trade talks, and as investors expected a worldwide wave of policy easing by central banks.

** The Hang Seng index rose 2.6% to 28,202.14, while the China Enterprises Index gained 2.5% to 10,764.70.

** China and the United States are rekindling trade talks ahead of a meeting next week between Presidents Donald Trump and Xi Jinping, cheering financial markets on hopes that an escalating trade war between the two countries would abate.

** Analysts doubt a breakthrough deal will be reached in Osaka, but said signs of progress may convince Trump to continue talks and postpone further tariffs on Chinese goods, which had been expected as early as July.

** Also lifting sentiment was expectations of easing by global banks.

** Investors wagered the Federal Reserve would follow the lead of the European Central Bank and open the door to future rate cuts at its policy meeting later in the day.

** Around the region, MSCI’s Asia ex-Japan stock index was firmer by 1.8%, while Japan’s Nikkei index closed up 1.72%.

** The yuan was quoted at 6.904 per U.S. dollar at 08:15 GMT, 0.23% firmer than the previous close of 6.92.

** The top gainers among H-shares were Huatai Securities Co Ltd up 8.43%, followed by Guangzhou Automobile Group Co Ltd, gaining 7.38% and Haitong Securities Co Ltd , up by 6.62%.

** The three biggest H-shares percentage decliners were Guangdong Investment Ltd, which was down 1.17%, China Shenhua Energy Co Ltd, which fell 0.2% and China Telecom Corp Ltd, down by 0.3%. (Reporting by the Shanghai Newsroom; editing by Uttaresh.V)

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