Update | Hong Kong stocks climb as gains by renewables and Sinopec offset decline in index heavyweight Ping An Insurance

Hong Kong stocks rebounded on Friday, after gains by renewable energy companies as well as China Petroleum and Chemical, the latter spurred by better than expected earnings, outweighed a loss by index heavyweight Ping An Insurance Group.

In Hong Kong, the benchmark Hang Seng Index added 0.91 per cent, or 272.00 points, to 30,280.67, and the Hang Seng China Enterprises Index, also known as the H-share gauge, rose by 0.98 per cent, or 117.20 points, to 12,066.58.

“Money is being diverted into the renewables and telecom sectors, as the HSI is consolidating around the 30,000 level. But the heavyweights still face selling pressures due to the ongoing worries about the US-China trade war,” said Stanley Chan, director of research at Emperor Securities.

Huaneng Renewables jumped by 5.7 per cent to HK$3.34, China Longyuan Power Group climbed 5.6 per cent to HK$7.35 and China Datang Corporation Renewable Power surged by 11.03 per cent to HK$1.61. Xinjiang Goldwind Science and Technology rose by 3.31 per cent to HK$13.74.

China Mobile advanced by 3.54 per cent to HK$74.65, China Unicom (Hong Kong) gained 2.63 per cent to HK$10.92, while China Telecom Corporation was 2.74 per cent higher at HK$3.75.

Technology stocks also rebounded in Hong Kong, after industry bellwethers from Amazon.com to Intel forecast second-quarter earnings that are expected to beat estimates. Apple supplier Sunny Optical Technology Group advanced by 3.38 per cent to HK$125.50, snapping a two-day, 10 per cent decline, and Tencent Holdings rose by 1.62 per cent to HK$388.40.

The earnings outlook for Hong Kong-listed companies remains bright. Among the companies that have already announced first-quarter results, net income rose by an average of 16 per cent, close to the 17.7 per cent full-year growth recorded in 2017, according to Bloomberg.