Hong Kong Stocks gains on firm offshore lead

Headline indices of the Hong Kong share market closed higher on Wednesday, 05 June 2019, as investors appetite for risk assets bolstered by tracking positive lead from Wall Street overnight and Chinese President Xi Jinping statement that the Chinese economy is stable, healthy and well placed to meet all risks and challenges. At closing bell, the Hang Seng Index advanced 0.5%, or 133.92 points, to 26,895.44. The Hang Seng China Enterprises Index was up 0.04%, or 3.93 points, to 10,345.05. Among the 50 blue chips, 36 rose and 13 fell, with only one stock remaining steady.

Investors risk sentiments underpinned after U.S. Federal Reserve Chairman Jerome Powell signalled a possible rate cut if the economy required in a boost to riskier assets. Powell said the central bank would act "as appropriate" to address trade war risks a day after St. Louis Fed chief James Bullard said a rate cut may be warranted soon. Powell said the Fed was "closely monitoring the implications" of a trade dispute that has disrupted global markets.

 

Blue chips were mostly higher. HSBC (00005) gained 0.9% to HK$64.25. HKEX (00388) added 1.7% to HK$248.8. Tencent (00700) bounced 1.2% to HK$331. China Mobile (00941) edged down 0.2% to HK$70.25. AIA (01299) put on 2.2% to HK$73.75.

Shares of tech players followed the rebound of peers in NASDAQ. Sunny Optical (02382) jumped 2.3% to HK$69.45. AAC Technologies (02018) also gained 2.3% to HK$41. BYD Electronic (00285) shot up 3.3% to HK$10.52. ZTE (00763) advanced 4.5% to HK$21.1. Xiaomi (01810) put on 2.2% to HK$9.22. Lenovo Group (00992) rose 3% to HK$5.52. China Tower (00788) shot up 4.7% to HK$1.99.

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