Hong Kong stocks made strong
gains and China indexes struck 10-moth highs on Tuesday morning
after major U.S. benchmarks hit fresh peaks overnight, with
energy shares sharply higher on prospects of oil producing
countries agreeing to curb output.
Hong Kong shares were poised for their best day in nearly
two weeks as the Hang Seng index added 1.3 percent to
22,646.38 points by the lunch break. The Hong Kong China
Enterprises Index gained 1.8 percent, to 9,616.59.
The optimism spilled over into the China market as well,
helping to push main indexes to fresh 10-month highs.
Both the blue-chip CSI300 index and the Shanghai
Composite Index advanced 0.7 percent, to 3,465.49 points
and 3,241.57 points, respectively.
Energy shares were the main gainers in
both markets, after oil prices surged over 4 percent on
The resurgence in oil prices came after comments by Russian
President Vladimir Putin raised expectations major oil producing
countries could reach a deal to limit output at a meeting next
But some analysts cautioned that the rebound could be
Lianxun Securities said in a note to clients that "the
rapidly-strengthening U.S. dollar is adding pressure on equities
in emerging markets," advising investors to take a cautious
In China, insurance companies continued to
rally, extending the previous day's gains, as investors bet the
sector would benefit from rising bond yields and a recovering
An index tracking coal miners was also firm,
rising 2 percent, as coking coal futures surged 7
percent to its highest level in 5 1/2 years.