Hong Kong and China shares snap losing streaks

Hong Kong shares closed higher on Monday, snapping an eight-session losing streak, boosted by stabilising global crude prices, but gains and turnover were capped by concern over key economic data due from Beijing on Wednesday.
The energy and materials sub-indexes outperformed the broader Hong Kong market, gaining 1.9 and 1.5 percent respectively after Brent crude rose more than $3 on Monday, rebounding from a fall of more than $16 last week as investors fled commodities on worries over slowing global growth.
"We have probably seen the worst of the unwinding last week," said Wing Fung Financial Group analyst Mark To. PetroChina Co Ltd provided the biggest support for the Hong Kong benchmark, up 1.7 percent on the day but only barely nudging the stock out of technically oversold territory after its 14-day relative strength index (RSI) value hit a one-year low on Friday.
The Hang Seng Index finished Monday trade up 0.8 percent to 23,336.0 but turnover hit a 3-month low, barely hitting HK$57.5 billion (US $7.4 billion), ahead of a market holiday in Hong Kong on Tuesday. Samsung Securities had reiterated its buy position on China Resources Land in a report on Friday, after last week's 1.6 percent retreat in its stock price has made it attractive.
"It's probably nothing more than rotational play at this point, given the overhanging caution on China's April data on Wednesday," said Peter Leung, sales director at UOB Kay Hian in Hong Kong. Beijing is expected to release April inflation data on Wednesday, with economists polled by Reuters expecting the figure to come in at 5.2 percent, compared with March's 5.4 percent, on falling food costs. The March figure was a 32-month high. A downside surprise for April will ease investor concern about the potential for a more prolonged tightening campaign after a selloff over the past three weeks.
Lingering worries over further policy tightening hit banking and insurance shares in China on Monday, with Industrial Bank Co Ltd down 1.5 percent and China Pacific Insurance (Group) Co Ltd off 1.0 percent. Losses in these sectors capped gains on the benchmark Shanghai Composite Index, as volumes remained thin with investors reluctant to place bets ahead of Wednesday.
China's main stock index ended up 0.3 percent to 2,872.5 points on Monday, after losing 1.6 percent last week, its third consecutive weekly decline. Turnover in the Shanghai A-share market on Monday barely hit 94 billion yuan ($14.5 billion), its second-lowest since February 1 and the thirteenth consecutive session it has finished under its 20-day moving average.
Shares related to the construction of high speed trains outperformed after the Ministry of Railway confirmed that China would invest around 750 billion yuan ($115 billion) to build high speed trains. Jinxi Axle, the biggest gainer on the Shanghai market, jumped by its 10 percent daily limit, while Gem-Year Industrial rose 4.8 percent.