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

Hong Kong stocks rise as China reopens after Lunar New Year

Air China and China Eastern decline as yuan weakens against US dollar

HONG KONG (Nikkei Markets) -- Hong Kong shares headed higher after a choppy morning session on Monday, with investors looking ahead to the outcome of another round of Sino-American trade talks in Beijing this week.

The Hang Seng Index was up 0.2% to 28,009.95 at noon after changing direction at least nine times. Social media and gaming major Tencent Holdings added 1.2% after two days of losses, while Ping An Insurance Group rose 0.8% following a 0.4% decline on Friday. CNOOC and PetroChina lost 0.5% and 0.4%, respectively, as Brent crude futures declined 1% in Asian trading on Monday.

Turnover on the Hong Kong Stock Exchange's main board was at 47.7 billion Hong Kong dollars ($6.08 billion) by midday, higher than usual for the time of day, as trading via the Shanghai and Shenzhen stock connects that link Hong Kong's markets to China resumed after a weeklong break for the Lunar New Year holiday.

In the mainland, the Shanghai Composite Index added 0.8%, while its Shenzhen counterpart climbed 2.2%. The yuan traded onshore fell 0.5% to 6.7759 against the U.S. dollar.

"A-shares always rally for a period after the Chinese New Year holidays," said Ricky Huang, an analyst at Luk Fook Financial Services, adding that investors were speculating about more policy support during the first quarter.

Shares of mainland Chinese airlines declined in Hong Kong as the yuan weakened, with Air China and China Eastern Airlines falling 2.2% and 2.3%, respectively. Mainland airlines bear fuel and aircraft acquisition costs in U.S. dollars.

Meanwhile, focus remained on U.S.-China trade talks. Another round of negotiations is scheduled to start in Beijing this week, with U.S. Trade Representative Robert Lighthizer and Trade Secretary Steven Mnuchin meeting Chinese officials on Thursday and Friday. The latest round of talks follows a meeting between China's Vice Premier Liu He and U.S. officials in Washington at the end of January. A 90-day truce in the trade war between the two nations is scheduled to end on March 1.

This week's meeting "probably won't result in a deal because the divergence on intellectual property rights is too big to close, and it is hard for China to make big concessions," Huang said. The truce deadline is "likely to see an extension," he said.

Health services provider Mason Group Holdings rose 5.4% in Hong Kong after saying its unit agreed to sell 46% of dairy processing and packaging business Blend and Pack to Wattle Health Australia Investments for 47.8 million Australian dollars ($33.9 million).

China Gingko Education Group fell 1.8% after saying an overallotment option related to its initial public offering lapsed without being exercised.

Energy services provider China Singyes Solar Technologies slumped 6% after saying it missed an interest payment on convertible bonds that was due on Feb. 8.

-- 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 January 31st

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