SHANGHAI: Hong Kong stocks rebounded on Tuesday, helped by steady Chinese share markets and as sharp gains in U.S. Treasury yields appeared to level off.
Hong Kong stocks pared Monday's losses and ended the morning session in positive territory. The benchmark Hang Seng index added 0.4 percent, to 22,314.62 points, while the Hong Kong China Enterprises Index gained 0.5 percent, to 9,393.29.
"In Hong Kong, our eyes were on the U.S. market in the evening and then shifted to China's market in the morning where sentiment has been positive," said Qian Qimin, analyst at Shenwan Hongyuan Securities, adding however that gains would be capped due to recent volatility in global markets.
China stocks were little changed after rising for three consecutive sessions. The CSI300 index gave back early gains and edge 0.2 percent lower, to 3,424.73 points, while the Shanghai Composite Index lost 0.3 percent, to 3,201.74 points.
Treasury prices eased after a surprising victory by Donald Trump in the U.S. presidential election sent longer-dated U.S. yields soaring, on growing worries that inflation will climb on his policies.
The U.S. dollar also weakened slightly, with the dollar index slipping after climbing for six straight days.
Lingering concerns over relations between the world's two largest economies eased after Chinese President Xi Jinping told Trump in a telephone call that cooperation was the only choice, with Trump saying the two had established a "clear sense of mutual respect".
But sentiment was dampened by an even weaker yuan, which has made yuan-denominated assets less attractive.
Data released on Morning showed that China's central bank sold less foreign exchange in October than an eight-month high hit in the previous month, but still indicating continued official interventions to support the yuan.
"Expectations toward Trump's economic stimulus has lifted the market in the short term, especially in sectors such as commodities," said Xiao Shijun, analyst at Guodu Securities in Beijing. "But the increase is subdued by China's economic condition and markets face downward pressure while being relatively stable in general."
China's port operators and shipping companies continued to rally on signs of recovery in the industry. An index tracking shipping operators soared to a nearly 7-month high.
In Hong Kong, gains in telecommunication and financial shares were offset by losses from consumer and industrial sectors.
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