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Hong Kong stocks rebounded on Thursday, led by energy and tech shares after China's central bank signalled it won't let the yuan fall sharply further. The Hang Seng index rose 0.4 percent, to 24,018.80, while the China Enterprises Index gained 0.4 percent, to 11,080.92 points. The People's Bank of China, which sharply devalued the yuan earlier in the week, said on Thursday that China's strong economic environment, sustained trade surplus, sound fiscal position and deep foreign exchange reserves provided "strong support" to the exchange rate.
Expectations of slower yuan depreciation aided market sentiment, despite Hong Kong's gloomy growth outlook. An index tracking Hong Kong-listed tech firms jumped 4.5 percent, while energy shares also posted solid gains. Airline operators, including China Eastern and Air China rebounded after tumbling over the past two days amid fears a weaker currency would hurt their bottom lines.

Copyright Reuters, 2015

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