HONG KONG: Hong Kong stocks extended early gains and closed at a 18-month high on Monday, drawing strength from firm mainland stock and commodity markets. The benchmark Hang Seng index added 0.5 percent, to 24,146.08 points, its highest close since Aug. 11, 2015, while the Hong Kong China Enterprises Index gained 0.8 percent, to 10,445.48 points.
Sentiment in the city was lifted by a strong mainland market, where blue-chips clocked their best single-day performance in six months after media reported pension funds might begin flowing into China’s stock markets as early as this week. Southbound flows through the Shanghai-Hong Kong Stock Connect recovered slightly on Monday, using 10 percent of Monday’s daily quota, compared with a mere 2.2 percent in the previous session. Nearly all sectors gained ground at the close, led by consumer staples stocks. A gauge of energy stocks added 1 percent, underpinned by rising prices of coal and oil. Shares of HNA Group jumped 17.5 percent, on news that the company took a stake of just over 3 percent in Deutsche Bank and said it could buy further shares in the German lender.
