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Nikkei Markets

Hong Kong shares rise amid receding global growth worries

Casino operators extend gains after better-than-expected Macau gaming data

HONG KONG (Nikkei Markets) -- Hong Kong shares headed for a sixth day higher on Tuesday after economic data from the world's largest economies allayed worries about a global downturn.

The Hang Seng Index was up 0.1% to 29,590.05 by noon. Casino operators Galaxy Entertainment Group and Sands China rose 3.6% and 1.2%, respectively, building on their advances on Monday, when gaming revenue data released by the Macau government came in better than expected. Wynn Macau and MGM China Holdings rose 0.8% and 1.3%, respectively.

Tencent Holdings advanced 0.7%. The company on Monday said its board increased the limit on its global medium term note program to $20 billion from $10 billion. The company is planning to raise around $5 billion through a dollar bond sale on Wednesday, Bloomberg reported, citing people familiar with the matter.

The three key U.S. equity indexes each rose more than 1% on Monday, after better-than-expected factory activity data from the U.S. and China helped ease concerns of a global slowdown. The Hang Seng Index entered a technical bull market on Monday -- rising more than 20% from its October lows. It has risen 14.5% so far in 2019 as hopes of a resolution to Sino-American trade tensions and receding concerns over rising U.S. interest rates helped.

The Hong Kong stock market's valuation "has gone from cheap to normal," said Kevin Leung, director of global investment strategy at Haitong International Securities. "We are seeing some long-term institutional buying coming back, both international and mainland."

The gauge "still has room to rise, but the climb will not be straight," he said.

In the mainland, the Shanghai Composite Index added 0.4% following a 2.6% jump on Monday. The yuan traded onshore fell 0.1% to 6.7191 against the dollar.

Cosmo Lady (China) Holdings jumped 11.7% after the lingerie maker said it plans to buy back shares under a mandate to repurchase up to 214.1 million shares.

Fullwealth Construction Holdings added 2.9%. The company on Monday said Woo Yiu Chung was replacing Mok Yu Ting as its chief financial officer, effective immediately.

Smartphone components supplier Q Technology (Group) climbed 2.9% after saying it plans to subscribe to 7.2 million new shares of Newmax Technology for 766.8 million Taiwanese dollars ($24.9 million). Q Tech holds about 36% of Newmax's issued ordinary shares.

Lippo China Resources fell 3.6% after saying it expects to report a net fair value loss of at least 200 million Hong Kong dollars ($25.5 million) for the year ended March 31, compared with a loss of about HK$42.7 million a year ago.

Chinese property developer Ronshine China Holdings declined 2.2% despite reporting a 21% increase in March contracted sales.

-- Amy Lam

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