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Nikkei Markets

Hong Kong stocks bounce back after three-week losing streak

Rusal plunges after US sanctions Oleg Deripaska; BYD, Great Wall Motor gain

HONG KONG (Nikkei Markets) -- Hong Kong shares climbed on Monday on expectations that a trade spat between the U.S. and China won't worsen.

The Hang Seng Index added 1.3% to 30,229.58, with 47 of its 50 constituents edging higher. Geely Automobile Holdings climbed 5.2% after reporting a 39% jump in sales volume for March from a year earlier.

Social-media major Tencent Holdings, which sank to this year's lowest level last week, rose 1%. London-based banking heavyweight HSBC Holdings added 1.6%. The stock had lost 5.1% of its value in March.

The gains follow a three-week losing streak for the Hong Kong equity gauge amid worries that a trade dispute between the world's two largest economies might escalate, potentially harming both nations. Investors await a speech to be made by Chinese President Xi Jinping on Tuesday for further cues.

"Investors are not that panicked due to the market's interpretation that the U.S. and China are not rushing into a trade war," said Castor Pang, head of research at Hong Kong-based broker Core Pacific-Yamaichi International. "We do not see a big incentive for China to start a trade war with the U.S. Some capital has come back to the market, chasing some of the stocks which fell previously."

On the mainland, the Shanghai Composite added 0.2%, while the Shenzhen Composite ended little changed. Onshore traded yuan weakened 0.1% against the U.S. dollar to 6.3103. China's markets were closed for holidays on Thursday and Friday.

Russian aluminum producer United Company Rusal lost a little more than half its market value in Hong Kong on Monday after the U.S. on Friday imposed sanctions on some Russian oligarchs and a few companies they control. The list included billionaire Oleg Deripaska, Rusal's controlling shareholder.

Swire Properties gained 0.9% after saying that a unit of the company entered an agreement to sell a residential unit in Hong Kong to Chairman John Slosar for HK$120 million ($15.4 million). Diversified conglomerate Swire Pacific, which owns 82% of Swire Properties, gained 0.3%. Slosar is also chairman of Swire Pacific.

CIFI Holdings Group advanced 2.8% after reporting an increase in its contracted sales for March to 10.20 billion yuan ($1.62 billion) from 9.10 billion yuan in the year-ago month.

China Longyuan Power Group jumped 7.3% after reporting a 19% year-on-year increase in power generation for March, driven by a 33.4% increase in wind power generation.

BYD rose 3.2%. On Sunday, the motor-vehicle-and-battery maker said it had sold a total of 43,166 vehicles in March, including 13,950 new-energy vehicles. Comparative year-ago figures were not available.

Great Wall Motor added 0.9%, erasing early losses. The Chinese sports-utility vehicle maker on Sunday reported a 3.3% increase in sales volume for March from a year earlier. While sales of its Haval SUVs fell 18.2% to 59,895 during the month, sales of new SUV models helped offset that decline.

Mainland developer China Vanke dropped 0.6% after reporting a 20.4% decline in contracted sales for March to 50.68 billion yuan ($8.05 billion).

Skyworth Digital Holdings slipped 0.8% following a 9% drop in total television sales volumes for March.

-- Amy Lam

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