Update | Oil rally helps lift Hong Kong stocks, but trade concerns linger
Imminent roll-out of Chinese Depositary Receipts programme rules propelled mainland Shanghai stocks, which outperformed other Asian markets
Hong Kong stocks closed a choppy session in the black on Monday, as gains in oil stocks, prompted by soaring crude prices, outweighed ongoing concerns that little progress had been made in trade talks between the US and China.
The Hang Seng Index swung between gains and losses, before ending up 0.2 per cent, or 67.76 points, at 29,994.26. The Hang Seng China Enterprises Index, known as the H-shares index, rose 0.6 per cent, or 75.79 points, to 11,966.41.
CNOOC, China’s largest offshore oil producer, jumped 3.1 per cent to HK$13.46 (US$1.71), the biggest contributor to gains on the Hang Seng Index, lifting the benchmark 23 points. PetroChina and Sinopec rose 2.7 per cent and 2.2 per cent to HK$5.71 and HK$7.66 respectively.
Fuelling the gains was a rally in crude prices on Monday. The US crude benchmark WTI climbed above US$70 a barrel for the first time since 2014, amid expectations US President Donald Trump will pull out of the 2015 Iran nuclear agreement which allows the Middle East country to export more crude.
Internet giant Tencent Holdings fell to a five-month low of HK$380, however, down 0.73 per cent from the previous day, dragging heavily on the Hang Seng Index, pulling it lower 20 points.
Lenovo Group, which will be kicked out from the Hang Seng Index starting June 4, tumbled 3.2 per cent to HK$3.6. CSPC Pharmaceutical, which will replace Lenovo, surged 5.9 per cent to HK$21.5.
