China, Hong Kong stocks rally on trade, easing hopes

China, Hong Kong stocks rally on trade, easing hopes
China, Hong Kong stocks rally on trade, easing hopes

* SSEC 1.5%, CSI300 2.0%, HSI 2.4%

* HK->Shanghai Connect daily quota used 4.7%, Shanghai->HK daily quota used 0.2%

* U.S., China rekindle trade talks ahead of Trump-Xi G20 meeting

SHANGHAI, June 19 (Reuters) - Stocks in China and Hong Kong jumped on Wednesday as Washington and Beijing looked to rekindle trade talks and confirmed Presidents Donald Trump and Xi Jinping would meet later this month.

Expectations of a worldwide wave of central bank easing added to investors' optimism.

The CSI300 index climbed 2.0% to 3,741.26 points at the end of the morning session, while the Shanghai Composite Index gained 1.5% to 2,933.64.

The Hang Seng index rose 2.4% to 28,150.33, on track for its biggest single-day rise since December 2018, while the Hong Kong China Enterprises Index advanced 2.4% to 10,756.50.

Trump said on Tuesday that teams from the two sides would begin preparations for the leaders to sit down at the G20 summit in Japan.

Confirmation of the Trump-Xi meeting raised hopes that the escalating trade war between the world's largest economies would abate. Analysts doubt a breakthrough deal will be reached in Osaka, but said signs of progress may convince Trump to postpone further tariffs which had been expected as early as July.

Also lifting the sentiment was expectations of easing by global banks.

The U.S. Federal Reserve is expected to leave borrowing costs unchanged at a policy meeting this week but possibly lay the groundwork for a rate cut later this year.

The European Central Bank will ease policy again if inflation fails to accelerate, ECB President Mario Draghi said on Tuesday, signalling one of the biggest policy reversals of his eight-year tenure and provoking the ire of U.S. President Donald Trump.

China, which began loosening policy last year, is also expected to announce more economic growth boosting measures in coming months.

Around the region, MSCI's Asia ex-Japan stock index firmed 1.67% while Japan's Nikkei index was up 1.68%.

The yuan was quoted at 6.9045 per U.S. dollar, 0.22% firmer than the previous close of 6.92.

So far this year, the Shanghai stock index is up 17.6%, while China's H-share index is up 8.9%.

About 14.85 billion shares have traded so far on the Shanghai exchange, roughly 70.7% of the market's 30-day moving average of 21.00 billion shares a day. The volume traded was 14.77 billion as of the last full trading day.

As of 04:16 GMT, China's A-shares were trading at a premium of 25.98% over the Hong Kong-listed H-shares.

(Reporting by Luoyan Liu and David Stanway; Editing by Kim Coghill)

all right reserved for yahoo news

PREV Revealed: The 67 MPs who rebelled against Rishi Sunak's proposed smoking ban - ... trends now
NEXT Doctors first 'dismissed' this young girl's cancer symptom before her parents ... trends now