China, Hong Kong stocks climb on stimulus hopes

SHANGHAI: China stocks climbed on Thursday, in line with gains in other Asian markets, on hopes of more economic stimulus from newly inaugurated U.S. President Joe Biden to offset damage wreaked by the COVID-19 pandemic.

The CSI300 index rose 1.8% to 5,573.39 at the end of the morning session, while the Shanghai Composite Index gained 1.3% to 3,629.61.

The tech-heavy start-up board ChiNext rallied 2.2%, while the STAR50 index firmed 0.6%.

Republicans in the U.S. Congress have indicated they are willing to work with the new president on his administration's top priority, a $1.9 trillion fiscal stimulus plan, but some are opposed to the plan's price tag.

Leading the gains, both CSI300 materials index and the CSI300 transport index jumped 3.1% each.

For now, the A-share market continued to find support from a solid recovery in China's economy and ample liquidity, Yuekai Securities noted in a report.

In Hong Kong, the Hang Seng index gained 0.2% to 30,012.19, while The Hong Kong China Enterprises Index was unchanged at 11,947.49.

Leading the gains, the Hang Seng materials index jumped 3.3%.

Around the region, MSCI's Asia ex-Japan stock index was firmer by 1.43% while Japan's Nikkei index was up 0.90%.

The yuan was quoted at 6.4605 per U.S. dollar, 0.04% firmer than the previous close of 6.463.

As of 04:10 GMT, China's A-shares were trading at a premium of 32.99% over the Hong Kong-listed H-shares.