Hong Kong, China shares track Wall Street's ascent; energy sector jumps

Last Updated: Tue, Nov 22, 2016 11:11 hrs
Asia Shares

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 Monday.

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 week.

But some analysts cautioned that the rebound could be fragile.

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 approach.

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 stock market.

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.

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