Hong Kong stocks ended higher on Monday, with the benchmark Hang Seng Index recording its best day in more than three weeks, buoyed by prospects of a rate cut in Europe. Mainland Chinese stocks fell despite positive manufacturing data.
Gains in the Hong Kong market also followed regional markets as sentiment improved as the European Central Bank (ECB) is seen almost certain to cut rates by a quarter point to 3.75%. Thursday, the first time in history that it would have eased its rates before the American Federal Reserve.
In China, a private survey showed manufacturing activity expanded in May at the fastest pace in about two years, with strong production and new orders.
** At market close, the benchmark Hang Seng Index was up 323.43 points or 1.79 percent at 18,403.04 points, recording the biggest daily rise in percentage terms since May 10. The Hang Seng China Enterprises Index rose 2.18 percent to 6,531.99 points.
** The Hang Seng subindex that tracks energy sector stocks rose 0.5%, while the information technology sector rose 3.16%, the financial sector finished up 0.82% and the real estate sector increased by 1.34%.
**The benchmark Shanghai Composite index closed 0.27% lower at 3,078.49 points, while the CSI300 index ended 0.25% higher at 3,588.75 points.
** The smaller Shenzhen index ended 0.61% lower and the younger ChiNext Composite index rose 0.795%.
** In the region, MSCI’s index of Asian stocks excluding Japan rose 1.9%, while Japan’s Nikkei index closed up 1.13%.
** The yuan was quoted at 7.2461 per US dollar at 0809 GMT, 0.05% weaker than the previous close of 7.2425. (Reported by Shanghai Newsroom; editing by Sohini Goswami)
