HSBC lifts Hong Kong shares to over 2-year high

The Hong Kong China Enterprises Index gained 0.6 percent, to 10,822.94.


Hong Kong equities gained on Monday, lifted by lenders such as HSBC Holdings after upbeat profit and strong gains in resource firms.

The Hang Seng index added 0.7 percent, to 27,180.02 points after rising as high as 27,199.47, its highest since June 2015.

The Hong Kong China Enterprises Index gained 0.6 percent, to 10,822.94.

HSBC Holdings shares jumped 2.9 percent to the highest intraday level since November 2014.

Europe's largest bank's profit beat analysts' estimates and the lender said it will spend up to $2 billion buying back stock.

An index of major material firms jumped 3.7 percent, tracking their mainland peers, as those firms are expected to benefit from China's continued supply-side reforms and a weaker dollar.

China Shenhua gained 3.7 percent, after the country's largest coal producer expected a big rise in first-half profits.

Index heavyweight Tencent rose 2 percent to a record high, which helped lift sentiment.

Meanwhile, Asian shares turned positive after solid Chinese data following a lacklustre start.

The official Chinese manufacturing and services purchasing managers' indices both slipped in July, but remained above the 50-point mark that separates growth from contraction on a monthly basis.

MSCI's broadest index of Asia-Pacific shares outside Japan reversed early losses to rise 0.1 per cent.

Investors will also be keeping a close eye on data, including eurozone core inflation for July on Monday; the Reserve Bank of India's meeting on Wednesday, at which it is expected to cut rates; and Bank of England on Thursday, where it is likely to leave rates unchanged.