Hong Kong Stocks Surge Amid European Rate Cut Prospects

Hong Kong stocks climbed significantly on Monday, with the Hang Seng index marking its best day in over three weeks, driven by expectations of a rate cut in Europe. Mainland China shares dipped despite positive manufacturing data. The Hang Seng index rose 1.79%, with significant gains across various sectors.

Hong Kong stocks finished higher on Monday, with the benchmark Hang Seng index recording its best day in more than three weeks, lifted by market prospects of a rate cut in Europe. Mainland China shares eased despite upbeat manufacturing data.

Gains in the Hong Kong market were also tracking regional markets as sentiment was improved as the European Central Bank (ECB) is considered almost certain to trim rates by a quarter point to 3.75% on Thursday, the first time in history it would have eased ahead of the U.S. Federal Reserve. In China, a private survey showed that manufacturing activity in May grew at the fastest pace in about two years with strong production and new orders.

** At the market close, the benchmark Hang Seng Index was up 323.43 points or 1.79% at 18,403.04 points, booking the biggest daily rise in percentage terms since May 10. The Hang Seng China Enterprises index rose 2.18% to 6,531.99 points. ** The sub-index of the Hang Seng tracking energy shares rose 0.5%, while the IT sector rose 3.16%, the financial sector ended 0.82% higher and the property sector rose 1.34%.

** The benchmark Shanghai Composite index closed down 0.27% at 3,078.49 points, while the blue-chip CSI300 index ended up 0.25% at 3,588.75 points. ** The smaller Shenzhen index ended down 0.61% and the start-up board ChiNext Composite index was higher by 0.795%.

** Around the region, MSCI's Asia ex-Japan stock index was firmer by 1.9%, while Japan's Nikkei index closed up 1.13%. ** The yuan was quoted at 7.2461 per U.S. dollar at 0809 GMT, 0.05% weaker than the previous close of 7.2425.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)