Hong Kong stocks rise to two-week high as oil, casino stocks advance in reflation trade amid PBOC policy assurance

China’s central bank pledges to keep policy flexible and precise and to prioritise stability and avoid ‘sharp turns’ in decisions

Casino stocks rallied after several upgrades by JPMorgan, while oil climbs to more than one-year high

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Stocks in Hong Kong and mainland China are holding on to recent gains as the Lunar New Year approaches Photo: EPA-EFE

Published: 11:20am, 9 Feb 2021Updated: 5:16pm, 9 Feb 2021

Hong Kong stocks rose for a third day on Tuesday, climbing to their highest level in two weeks, as oil and casino stocks advanced on bets on a stronger global economic recovery. China’s central bank also pledged a stable monetary policy after recent concerns about liquidity support, boosting sentiment.

The Hang Seng Index gained 0.5 per cent to 29,476.19, closing at its highest level since January 25, when the benchmark closed above 30,000 for the first time since May 2019. The Shanghai Composite Index surged 2 per cent to 3,603.49 for a second day of gains.

Sands China climbed 3.3 per cent to HK$33.95 while Melco International appreciated 4.8 per cent to HK$15.36. MGM China increased 1.5 per cent to HK$12.54. JPMorgan had upgraded five Macau casino stocks earlier this week.

CNOOC added 3.4 per cent to HK$8.88 while PetroChina jumped 2.1 per cent to HK$2.44. Sinopec rose 2.4 per cent to HK$3.85. They added to a recent run-up among oil producers.

Hong Kong Exchanges and Clearing (HKEX) slipped 0.8 per cent to HK$514.500. The bourse operator has chosen JPMorgan Chase & Co banker Nicolas Aguzin to become its next chief executive, replacing Charles Li Xiaojia, according to people familiar with the matter.

Tencent added 0.5 per cent to HK$740.50. The Chinese technology giant has gifted some of its employees 100 shares each as a reward for their efforts to fight the Covid-19 pandemic.