Energy, telecom firms lift Hong Kong stocks higher; China trade in narrow range

SHANGHAI: Hong Kong stocks climbed for a third straight session on Tuesday, buoyed by gains in shares of energy and telecommunications firms.

** The Hang Seng index rose 1.3% to 28,545.20, while the Hong Kong China Enterprises Index gained 1.2% to 10,632.05. Both were poised for a third straight session of gains.

** Leading the gains, the Hang Seng energy index and the Hang Seng telecommunications index advanced 3.2% and 2.7%, respectively.

** "Latest economic data from China and the United States showed growth slowed to some extent, raising hopes that monetary easing could continue," said Linus Yip, chief strategist at First Shanghai Group.

** Data on Monday showed China's factories slowed their output growth in April and retail sales significantly missed expectations as officials warned of new problems affecting the recovery in China.

** "The increase in regional coronavirus infections, including in Japan, Taiwan and India, was in sharp contrast with good control over the coronavirus outbreak in mainland China and Hong Kong, bolstering investors confidence in stocks in the two markets," Linus added.

** On the other hand, there were also some signs of mainland investors hunting for bargains in some sectors, including in the tech sector, which had slumped due to anti-monopoly fears.

** The Hang Seng tech index added 1% on Tuesday, but it was still off nearly 30% from a record high hit on Feb. 18.

** All eyes are now on Wednesday's release of the minutes from the US Federal Reserve's policy meeting last month.

** On the mainland, major indexes were mixed after hitting two-month highs in the previous session.

** The CSI300 index fell 0.2% to 5,176.89 at the end of the morning session, while the Shanghai Composite Index gained 0.1% to 3,520.48.