Hong Kong and Shanghai stocks open higher after Wall Street rally

Hong Kong and mainland Chinese stocks opened higher on Tuesday, following a rebound in US equities driven by gains in financial shares.

The Hang Seng Index opened up 0.54 per cent or 123.74 points to 22,945.08, and the Hang Seng China Enterprises index rose 0.46 per cent or 43.84 points to 9,541.66.

In the mainland, the Shanghai Composite Index inched 0.05 per cent higher to 3,071.44. The CSI 300, which tracks the large caps listed in Shanghai and Shenzhen, was up 0.08 per cent to 3,310.32.

The Shenzhen Composite Index added 0.08 per cent to 2028.85. The Shenzhen Component Index also moved 0.08 per cent higher to 10732.77. However, the Nasdaq-style ChiNext index traded lower by 0.2 per cent to 2,197.491.

A batch of Hong Kong-listed corporate heavyweights are due to announce their interim results on Tuesday, including ICBC, the world’s largest bank by assets, Bank of China, Air China, and China Eastern Airlines.

Overnight on Wall Street, US stocks ended a three-day decline to close higher. However, trading volumes dropped to the lowest level of this year, as previous comments from Federal Reserve chairwoman Janet Yellen lifted expectations of an early US interest-rate increase.

The Dow Jones Industrial Average rose 107.59 points, or 0.6 per cent, to close at 18502.99. The SP 500 gained 11.34 points, or 0.5 per cent, to 2180.38, marking its biggest daily gain since August 5th. The Nasdaq Composite added 13.41 points, or 0.3 per cent, to 5232.33.

In currency market, the People’s Bank of China on Tuesday set the yuan’s mid-point rate against the US dollar at 6.6812, 44 basis points or 0.066 per cent stronger than Monday’s fix.

Traders are allowed to trade up to 2 per cent either side of the reference rate for the day.

Elsewhere in Asia, Tokyo’s Nikkei 225 lost 0.14 per cent to 16,714.22 on Tuesday morning. Sydney’s SP/ASX 200 added 0.54 per cent to 5,498.6.