Hong Kong stocks end higher on EU stimulus deal, virus vaccine hopes

Hong Kong stocks ended higher on Tuesday, tracking wider gains in other Asian markets, as investors cheered European Union's stimulus plan to revive the coronavirus-hit economies, while hopes for a vaccine also boosted risk appetite.

At the close of trade, the Hang Seng index was up 577.67 points or 2.31pc at 25,635.66.

The Hang Seng China Enterprises index rose 1.46pc to 10,445.42.

Around the region, MSCI's Asia ex-Japan stock index was firmer by 2.05pc, while Japan's Nikkei index closed up 0.73pc.

Asian shares hit a five-month high on Tuesday after European Union leaders agreed on a massive stimulus plan for their coronavirus-blighted economies.

Early data from trials of three potential COVID-19 vaccines released on Monday, including a closely-watched candidate from Oxford University, increased confidence that a vaccine can train the immune system to recognize and fight the novel coronavirus without serious side effects.

Leading the gains, the Hang Seng IT sub-index surged 7.5pc in its best day since Nov. 2, 2018.

E-commerce giant Alibaba Group Holding's Hong Kong shares ended up 7.3pc after Ant Group, its fintech arm, said it has started the process of a dual listing in Hong Kong and on Shanghai's Nasdaq-style Star Market.

The strong tech rally came after Hang Seng Indexes Co Ltd said it would launch the Hang Seng TECH Index on July 27, and after Ant Group announced a dual-listing plan.

Hong Kong shares shrugged off concerns over rising political tensions between China and the UK after Britain announced it would suspend its extradition treaty with Hong Kong.

At close, China's A-shares were trading at a premium of 32.68pc over Hong Kong-listed H-shares.

The price-to-earnings ratio of the Hang Seng index was 10.97 as of the last full trading day while the dividend yield was 3.3pc.