Hong Kong: Energy leads stocks higher on pandemic recovery signs

[HONG KONG] Hong Kong shares settled higher on Tuesday, with energy stocks leading the gains on signs of recovery from the coronavirus pandemic as major economies around the world reopen.

The Hang Seng index closed up 199.60 points or 0.7 per cent at 28,557.14, snapping two straight sessions of decline.

The Hang Seng China Enterprises index rose 0.49 per cent to 10,765.72.

The sub-index of the Hang Seng tracking energy shares rose 2.3 per cent, while the IT sector edged up 0.05 per cent, the financial sector climbed 0.78 per cent and the property sector gained 0.52 per cent. The tech index was up 0.68 per cent.

Oil prices rose in early trade, buoyed as more US states eased lockdowns and the European Union sought to attract more travellers. However, crude oil reversed gains later in the day amid concerns over fuel demand in India as Covid-19 cases soar.

The Hang Seng's positive performance came after the index shed about 1,000 points over the last two sessions, but investors were not seen chasing the market, traders said.

Chinese financial and futures markets are closed from May 1-5 for the Labour Day holiday.

The top gainer on the Hang Seng was China Petroleum & Chemical, which rose 4.08 per cent, while the biggest loser was China Construction Bank, which fell 0.82 per cent.

Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.16 per cent.

The top gainers among H-shares were China Petroleum & Chemical, up 4.08 per cent, followed by ENN Energy Holdings, gaining 3.27 per cent, and ANTA Sports Products, up by 3.11 per cent.

The three biggest H-shares percentage decliners were Baidu, which was down 1.47 per cent, Hansoh Pharmaceutical Group Company, which fell 1.03 per cent, and China Construction Bank, down by 0.82 per cent.

REUTERS