Hong Kong shares rebounded sharply on Tuesday, as Asian markets regained ground amid signs US President Donald Trump is facing growing pressure from political allies to pull back from proposed steel and aluminium tariffs. The Hang Seng index rose 2.1 percent, to 30,510.73, while the China Enterprises Index gained 2.7 percent, to 12,311.54 points.
"Investors have been nervous about the prospects of a trade war, and any signs of it not materializing would give the market relief," said Linus Yip, Hong Kong-based chief strategist at First Shanghai Securities. On Monday, the Hang Seng dropped 2.3 percent.
Banking stocks also posted robust gains, on news that China's banking regulator plans to cut the provision coverage ratio for commercial banks to 120-150 percent from 150 percent. Yip of First Shanghai Securities said the move would allow banks to lend more and would increase their profit. The sub-index of the Hang Seng tracking energy shares climbed 2.8 percent while the IT sector rose 2.98 percent and property sector by 1.05 percent.
The top gainer on Hang Seng was Want Want China Holdings Ltd up 4.4 percent, while the biggest loser was Bank of East Asia Ltd, down 0.59 percent.
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