Across The Border | Hong Kong stocks close higher as US dollar retreats, Shenzhen prepares for stock connect debut
Hang Seng Index closes 0.46 per cent higher at 22,323.91 on Tuesday while the Hang Seng China Enterprises Index gains 0.59 per cent to 9,398.10
Hong Kong stocks reversed two days of declines to close higher on Tuesday as the US dollar retreated from recent highs and the Shenzhen Hong Kong Stock Connect prepared for its debut.
The Hang Seng Index ended the day up 0.46 per cent or 101.69 points at 22,323.91 while the Hang Seng China Enterprises Index jumped 0.59 per cent or 55.23 points to 9,398.10.
The US dollar index, a measure of the greenback against a basket of global peers, was 0.23 per cent weaker in Asia on Tuesday, snapping a seven-day winning streak after reaching a one-year high of
100.11.
The retreat of the US dollar left Asian markets firmer after US Treasury yields, at a one-year high on Monday, weighed on Hong Kong stocks, dragging them down 3.72 per cent in the previous two trading days.
I treat today’s rise as a technical rebound after a big fall before
“I treat today’s rise as a technical rebound after a big fall previously,” said Linus Yip Sheung-chi, chief strategist at First Shanghai Securities. “I expect a fluctuation in Hong Kong stocks amid volatile global markets this year.”
