Hong Kong: Stocks jump 2.79%

[HONG KONG] Hong Kong stocks resumed their rally on Tuesday, surging 2.79 per cent after a heavy sell-off in the previous session, as dealers followed a strong lead from Wall Street.

The benchmark Hang Seng Index added 755.56 points to 27,850.49. Turnover was HK$182.96 billion (S$31.9 billion). Shanghai rallied 1.81 per cent.

Investors rushed back into the HSI and Shanghai's benchmark index after both suffered big losses on Monday on news of a mainland clampdown on margin trading, as well as measures to make short selling easier.

The announcement late on Friday overshadowed Sunday's decision by the People's Bank of China to cut the reserve ratio requirement - the level of funds that commercial banks must hold in reserve.

That came days after data showed the Chinese economy growing at its weakest pace since the financial crisis, fuelling hopes for a new programme of stimulus measures.

AFP