Hong Kong stocks climb on China stimulus, drop in coronavirus cases

• The sub-index of the Hang Seng tracking energy shares rose 0.7pc, while the IT sector rose 1.86pc, the financial sector ended 1.87pc higher and the property sector rose 2.24pc.
• China's main Shanghai Composite index closed up 2.05pc at 2,820.76 points, while the blue-chip CSI300 index ended up 2.28pc.
• Around the region, MSCI's Asia ex-Japan stock index was firmer by 2.38pc, while Japan's Nikkei index closed up 2.01pc.

SHANGHAI: Hong Kong stocks closed more than 2pc higher on Tuesday, in line with mainland gains, after Beijing's latest economic stimulus and a fall in cases of the new coronavirus.

At the close of trade, the Hang Seng index was up 504.17 points, or 2.12pc, at 24,253.29. The Hang Seng China Enterprises index rose 2.02pc to 9,846.92.

The sub-index of the Hang Seng tracking energy shares rose 0.7pc, while the IT sector rose 1.86pc, the financial sector ended 1.87pc higher and the property sector rose 2.24pc.

The top gainer on the Hang Seng was Galaxy Entertainment Group Ltd, which gained 7.35pc, while the biggest loser was Hang Seng Bank Ltd, which fell 1.01pc.

China's main Shanghai Composite index closed up 2.05pc at 2,820.76 points, while the blue-chip CSI300 index ended up 2.28pc.

China's central bank said on Friday it was cutting the amount of cash that small banks must hold in reserve, releasing around 400 billion yuan ($56 billion) in liquidity to shore up an economy jolted by the coronavirus outbreak.

The benchmark Hang Seng index may start to stabilize for now, as the PBOC's move is expected to substantially lift market sentiment, analysts at Guodu Hong Kong said in report.

Also helping provide some support were tentative signs the coronavirus crisis may be levelling off in New York and receding in Europe.

The United States is bracing for its toughest week yet as the death toll climbs above 10,000 while across the Atlantic, British Prime Minister Boris Johnson has entered intensive care after his COVID-19 symptoms worsened.

Around the region, MSCI's Asia ex-Japan stock index was firmer by 2.38pc, while Japan's Nikkei index closed up 2.01pc.

The yuan was quoted at 7.0585 per US dollar at 08:18 GMT, 0.5pc firmer than the previous close of 7.0938.

At close, China's A-shares were trading at a premium of 25.86pc over Hong Kong-listed H-shares.