Update | Hong Kong investors seek shelter in consumer stocks amid trade war fears
Benchmark Hang Seng Index reverses early losses to end up 0.3pc, with Hengan International and China Mengniu Dairy rising sharply
Hong Kong stocks reversed early losses to end higher on Tuesday, fuelled by sharp gains in domestic consumption-related stocks as investors sought shelter in more defensive sectors amid fears about an escalating trade war between the US and China.
The Hang Seng Index dropped as much as 1.1 per cent in morning trade, after the US stocks tanked on Monday night. But it reversed its losses in the final hour of trading, ending up 0.3 per cent, or 86.72 points, at 30,180.10.
The Hang Seng China Enterprises Index, known as the H-shares index, gained 1.2 per cent, or 138.33 points, to 12,136.67.
Turnover on the main board dropped 15 per cent to HK$116.6 billion (US$14.85 billion) from the previous session.
Consumer stocks attracted the biggest buying interest. Hengan International, China’s largest producer of sanitary towels and diapers, soared 8.3 per cent to HK$78.7, the top gainer among Hang Seng Index constituent stocks.
China Mengniu Dairy Company, also an index component and one of the country’s largest milk producers, jumped 3.7 per cent to HK$27.9.