HONG KONG: Hong Kong stocks ended higher on Tuesday, led by strong gains for consumer firms, as they were expected to be less impacted by the Sino-US tensions. Snapping a three-day losing streak, the Hang Seng index rose 2.1% to close at 24,890.68, while the China Enterprises Index gained 1.6%, to 10,153.40.
Leading the gains, the Hang Seng consumer discretionary index ended 3% higher at a near seven-month peak, with Chinese hot-pot restaurant chain operator Haidilao International Holding surging 13% to a record peak.
"Investors are shifting their focus to consumer players that benefit from China's robust domestic demand, as they are less impacted by the Sino-US tensions," said Linus Yip, chief strategist at First Shanghai Group.
China is looking to reduce its reliance on overseas markets and technology for its economic development, government advisers say, as US hostility and a pandemic increase external risks that could hamper longer-term progress. Adding to signs of a recovery, data on Monday showed China's factory deflation eased in July as global oil prices rose and industrial activity climbed back towards pre-coronavirus levels.
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