Hong Kong - AFP
Hong Kong shares rose 1.16 percent on Tuesday, in line with regional stocks and snapping a five-day losing streak. The benchmark Hang Seng Index added 251.08 points to 21,850.59 on turnover of HK$69.51 billion ($8.92 billion). Analysts said the index was helped by bargain hunting as it was down 8.8 percent for the month as of Monday. \"While some investors remain concerned about possible monetary tightening measures from China to curb inflation, attractive valuations have started to emerge after the recent correction,\" said Patrick Yiu, managing director of CASH Asset Management. He said he believed concerns about tightening in China have largely been factored in. Chinese coal producer Shenhua Energy, one of the best-performing blue chips Tuesday, rose 3.5 percent to HK$35.60 on expectations of higher demand in the peak summer season, Yiu said. Yanzhou coal was 3.1 percent higher at HK$29.95. China oil producer PetroChina was up 1.8 percent at HK$11.08. Linus Yip, a strategist at First Shanghai Securities, said some players stayed away before a two-day US Federal Reserve policy meeting starts Tuesday, awaiting more trading cues from Chairman Ben Bernanke on the outlook for the world\'s number one economy. Chinese shares closed up 0.96 percent. The Shanghai Composite Index, which covers both A and B shares, was up 25.23 points at 2,646.48 on turnover of 73.3 billion yuan ($11.3 billion). \"Selling pressure is declining after many investors have headed for the sidelines in recent sell-offs,\" Jacky Zhang, an analyst at Capital Securities, told Dow Jones Newswires. \"But shares are unlikely to rise sharply as long as inflation remains high,\" Zhang added. Cement companies gained on news that China has issued guidelines allowing local governments to issue bonds to fund public-housing construction, dealers said. Anhui Conch Cement rose 4.3 percent to 26.30 yuan Lionhead Cement surged by the 10 percent daily limit to 10.31. Coal miners also rallied on attractive valuations. China Shenhua Energy jumped 2.9 percent to 28.82 yuan, while Yanzhou Coal Mining added 3.3 percent to 34.36.