Financials lift HK stocks to near 3-wk high ahead of handover day

June 29 (Reuters) – Hong Kong stocks closed at their highest
level in nearly three weeks on Thursday, led by financials on
bet that Beijing would unveil supportive policies as President
Xi Jinping visits the former British colony to commemorate the
20th anniversary of its handover to China on July 1.

Sentiment was also aided by a jump in raw material shares
as a weaker U.S. dollar pushed up commodity prices.

The Hang Seng index rose 1.1 percent to 25,965.42,
while the China Enterprises Index gained 0.2 percent to
10,432.02.

Financial shares rose sharply on expectations that
China will announce more measures to link its markets with Hong
Kong’s, benefiting investment banks and brokerages.

Index heavyweight HSBC gained over 6 percent, as
Morgan Stanley upgraded the stock to “overweight” from “equal
weight”.

An index tracking commodity stocks jumped. Jiangxi Copper
rose over 3 percent, while Minmetals Development
surged roughly 7 percent.

Hong Kong’s penny stock woes eased, as the second board
, which had dropped sharply this week to record lows,
ended Thursday roughly flat.
(Reporting by the Shanghai Newsroom; Editing by Gopakumar
Warrier)

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