Hong Kong: Stocks end higher on first day of trade in 2021

[HONG KONG] Hong Kong stocks tracked gains in other Asian markets to kick off the new year on an upbeat note, although the gains were capped by Sino-US tensions.

The Hang Seng index rose 0.9 per cent to 27,472.81, its highest since Feb 20, 2020, while the China Enterprises Index lost 0.1 per cent to 10,722.99.

Leading the gains, the Hang Seng materials index and the Hang Seng industrials index climbed 4. per cent and 3.3 per cent, respectively.

Money would flow back to traditional stocks, thanks to expectations of a global economic recovery on vaccine progress, while consumer firms are expected to benefit from China's continued measures to stimulate the country's consumption, KGI Securities noted in a report.

Activity in China's factory sector rose in December as the economy sustained its recovery to pre-pandemic levels, a business survey showed on Monday.

Capping gains, however, was China's firm opposition to the US government's move to politicise trade issues after the New York Stock Exchange began delisting three Chinese telecom firms that Washington says have military ties.

Bucking the broad strength, the Hang Seng telecommunications index declined 1.1 per cent.

REUTERS