Hong Kong shares extend gains on optimism over economic recovery policies

BEIJING: Hong Kong shares extended gains on Tuesday to scale a near two-week peak, supported by optimism over Beijing's coronavirus recovery effort.

At the close of trade, the Hang Seng index was up 263.42 points or 1.11pc at 23,995.94.

The Hang Seng China Enterprises index rose 0.43pc to 9,876.25.

The Hang Seng jumped the most in two months on Monday after U.S. President Donald Trump's measured response to China's national security law on Hong Kong.

On Tuesday, the sub-index of the Hang Seng tracking energy shares rose 0.5pc, while the IT sector dipped 0.19pc, the financial sector ended 1.52pc higher and the property sector rose 2.09pc.

Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.78pc, while Japan's Nikkei index closed up 1.19pc.

The yuan was quoted at 7.1144 per U.S. dollar at 08:08 GMT, 0.2pc firmer than the previous close of 7.129.

Hong Kong leader Carrie Lam accused foreign governments on Tuesday of "double standards" in their reaction to Beijing's plans to impose national security laws on the city, pointing to anti-police brutality protests in the United States.

Trump, who had said Hong Kong was no longer sufficiently autonomous from Beijing as promised at the time of the 1997 handover of the territory by Britain, did not call for an immediate end to the special treatment on Friday, providing relief to many investors.

China's parliament approved the proposal last week, prompting a revival of protests against what protesters say is China's deep encroachment on Hong Kong's autonomy and freedom.