ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Nikkei Markets

Hong Kong shares post gains for first time in three days

Stock market operator to allow listings of companies with weighted voting rights

HONG KONG (Nikkei Markets) -- Hong Kong shares endured concerns about rising U.S. bond yields and geopolitics to rise for the first time in three trading days on Tuesday, with Chinese financial heavyweights pacing gains, while technology stocks advanced after recent losses.

The Hang Seng Index closed 1.3% higher at 30,636.24. Industrial & Commercial Bank of China (ICBC) climbed 2.4% and Ping An Insurance Group rose 1.5%. Apple supplier Sunny Optical Technology Group gained 1.7% after shedding 12.1% over the previous two days on worries about a slowdown in smartphone demand. Market heavyweight Tencent Holdings, the most valuable company listed in Hong Kong, added 0.7% amid optimism over the outlook for its gaming revenue.

The Hang Seng China Enterprises Index advanced 2%, taking cues from mainland markets. The Shanghai Composite Index also gained 2%. Leaders of the Communist Party of China on Tuesday signaled their intent to fine-tune policies to prevent an economic slowdown.

The day's equity moves in Hong Kong extend the choppy trading pattern of recent weeks. The Hang Seng Index is on course for a monthly gain in April, although it has declined in four of the past five weeks. Trade tensions between the U.S. and China continue to cloud investor sentiment even as verbal exchanges between the two nations have eased.

Global investors have also been closely watching U.S. Treasurys as the yield on 10-year securities approach the 3% level. The yield was at 2.97% late in Asia on Tuesday.

"The Hang Seng Index is still in a consolidation stage and is following A-share indexes tightly," said Andy Wong, chief investment strategist at Harris Fraser (International).

Hong Kong's stock exchange on Tuesday said new rules broadening the city's listing system will take effect on April 30 after receiving "overwhelming stakeholder support" for the proposals.

The changes will see the exchange permitting listings of companies with weighted voting-rights structures and allowing biotech companies, which do not meet the financial eligibility requirements, to be listed on the market's main board. Shares of Hong Kong Exchanges & Clearing, the operator of the stock exchange, climbed 1.2% before the changes were announced after the close of trading.

Russian aluminum producer United Company Rusal soared by a record 43.4% for the stock after the U.S. on Monday extended its deadline by which American customers need to wind down their businesses with the company to Oct. 23 from a previous cutoff date of June 5. The U.S. Treasury Department also said it would consider lifting sanctions on the company if Russian tycoon Oleg Deripaska sold his stake in Rusal.

Kerry Logistics Network rose 0.7% after the company announced a deal that would result in the sale of a 17% stake in a domestic express delivery services unit in Thailand for 1.09 billion Hong Kong dollars ($139 million).

BAIC Motor added 1.9% after the Chinese automaker posted a 17.5% year-on-year increase in net profit for the quarter ending in March to 1.6 billion yuan ($253.6 million). Total operating income for the period rose 9.3% to 39.81 billion yuan.

China Railway Construction advanced 1% after reporting a 7% increase in the value of newly signed contracts for the March quarter to 279.9 billion yuan.

Datang International Power Generation rose 1.3% ahead of its quarterly results, due later on Tuesday. Late Monday, the company reported a 10.2% increase in total power generation for the first quarter.

-- Amy Lam

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends June 30th

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media