Hong Kong stocks mark best day in two months as inflation fears subside
* Daily quota HK-> Shanghai Connect used 35.2%, daily quota Shanghai-> HK used 8.5%
* HSI + 1.8%, HSCE + 1.4%, CSI300 + 3.2%
* FTSE China A50 + 4.2%
May 25 (Reuters) – Hong Kong stocks rose on Tuesday, posting their best session in nearly two months, as inflation fears faded, while strong gains on the mainland also boosted l appetite for risk.
** At the close of trade, the Hang Seng Index was up 1.75% to 28,910.86, marking its biggest daily percentage gain since April 1. The Hang Seng China Enterprises Index rose 1.42% to 10,792.63.
** The Hang Seng tracking energy equity sub-index rose 1.2%, while the IT sector rose 1.97%, the financial sector finished up 1.42% and the real estate sector grew 0.6%.
** The biggest winner of the Hang Seng was WuXi Biologics (Cayman) Inc, which gained 5.92%, while the biggest loser was Sino Biopharmaceutical Ltd, which lost 2.87%.
** Beijing has pledged to keep the country’s commodity markets stable after prices rebounded earlier this year, reducing inflation fears.
** In the latest move, Chinese market regulators warned metal industrial companies to maintain “normal market order” when discussing the sharp price hikes.
** Inflation fears have also subsided abroad. The US National Activity Index of 0.24 versus expectations above 1, along with dovish comments from Federal Reserve speakers, supported the idea that policy will remain in limbo for some time.
** The main Shanghai Composite Index in China closed 2.4% higher at 3,581.34 points, while the blue-chip CSI300 index finished up 3.16%.
** Mainland investors bought net 8.7 billion yuan of Hong Kong shares on Tuesday through Stock Connect connecting the mainland and Hong Kong, according to data from Refinitiv.
** Shares of Xiaomi Corp closed up 4.1%, after index provider FTSE Russell said it would add the company back to its global indices.
** In the region, the MSCI Asia ex-Japan stock index strengthened 1.43%, while the Japanese Nikkei index closed 0.67% higher. (Report from the Shanghai Newsroom; edited by Subhranshu Sahu)