Hong Kong stocks end 1.78% higher
Hong Kong shares have risen 1.
78 per cent following a positive lead from Wall Street as investors await the new Federal Reserve chief’s first testimony to Congress.
The benchmark Hang Seng Index added 383.72 points to end Tuesday at 21,962.98 on turnover of HK$66.69 billion ($A9.65 billion), its biggest rise in nearly three months as investors looked to snap up beaten down Chinese stocks.
And Shanghai posted a third-straight gain since reopening after the week-long Lunar New Year holiday.
Janet Yellen, who took over at the Fed on February 1, was to testify to a House of Representatives committee later on Tuesday on the state of the economy and the course of monetary policy.
Analysts will be looking for clues about her plans for the bank’s stimulus program, which the policy board has reduced twice in as many months, with the most recent sparking turmoil in global markets.
Trade in Hong Kong has been cautious since the start of the year with the Hang Seng sliding 12 per cent last month, its worst monthly performance since June.
But bargain hunting was firmly back on the agenda on Tuesday.
Heavily-weighted bank shares rallied across the board. China Construction Bank jumped 3.1 per cent to HK$5.34 and Bank of China rose 2.2 per cent to HK$3.25.
Ping An Insurance rose 5.12 per cent to HK$63.65, HSBC was 0.63 per cent higher at HK$79.70, energy giant CNOOC climbed 4.79 per cent to HK$12.68 and internet giant Tencent eased 0.66 per cent to HK$530.00.
Shares at China’s biggest exchange rose 0.84 per cent. The Shanghai Composite Index closed up 17.60 points at 2,103.67 on turnover of 125.3 billion yuan ($A23.20 billion).
The index has risen more than three per cent since Friday and is now above the 2100 level for the first time since the start of the year.
The gains added to the near-two per cent jump enjoyed on Monday that was fuelled by hopes China will unveil new measures to support the economy at the leadership’s annual meeting next month.
But the Shenzhen Composite Index ended down 0.07 per cent, or 0.84 points, at 1,127.22 on turnover of 181.5 billion yuan.
“We saw a pullback in the Shenzhen index today as investors dumped technology firms with overly high prices and chased cheap banking stocks on the Shanghai main board,” Zheshang Securities analyst Zhang Yanbing told AFP.
Investors are also cautiously awaiting the release of January trade and inflation figures, with many hoping they will show an improvement following a string of soft indicators suggesting the world’s number two economy is slowing down.
Banks led gains, with China Citic Bank surging by its 10 per cent daily limit to 4.18 yuan while Pudong Development Bank rose 2.69 per cent to 9.54 yuan.
Technology shares were lower, with Jiangsu Yitong Hi-Tech tumbling 6.62 per cent to 25.12 yuan and East Money Information off 6.41 per cent at 18.54 yuan.