June 5, 2020 / 9:09 AM / a month ago

Hong Kong stocks post biggest weekly jump in 5 years on cenbanks' boost globally

* Hang Seng gains 1.7%, up 7.9% week-on-week; H-shares add 1%

* Global markets jump on expectations of central bank stimulus

* Hopes of China policy support offset local risks, U.S. tensions

HONG KONG, June 5 (Reuters) - The Hong Kong stock market ended higher on Friday, clocking its largest weekly gains since 2015, as improving investor sentiment and central bank support globally offset local political concerns. ** The Hang Seng index closed 1.7% higher at 24,770.41 and up 7.9% for the week in its biggest jump since 2015. The Hang Seng China Enterprises index rose 1% on Friday.

** The sub-index tracking the financial sector gained 9% this week while the property sector jumped 10%, with both recording their best week since 2011. ** Mainland Chinese shares had their best week in three months thanks to fresh signals of policy support from Beijing earlier in the week.

** Hong Kong shares also benefited from improving global sentiment, as investors cheered the European Central Bank’s stimulus support, said Steven Leung, executive director for institutional sales at brokerage UOB Kay Hian. ** Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.9%, while Japan’s Nikkei index closed up 0.7%. E-mini futures were up almost 1%.

** U.S.-China tensions remained a risk. The two sides clashed throughout the week over Hong Kong’s trade status, as well as about airlines operation and human rights issues. ** Hong Kong’s central bank sold HK$977 million ($126.06 million) worth of Hong Kong dollars after the local currency hit the strong end of its trading band for the first time since late May. ** In rare statements concerning Hong Kong, China’s central bank and banking regulator expressed support on Thursday for the city’s financial stability as Beijing moved to impose a national security law there. ** About 2.40 billion Hang Seng index shares were traded. The volume traded in the previous trading session was 1.89 billion. ** At close, China’s A-shares were trading at a premium of 24.44% over Hong Kong-listed H-shares.

Reporting by Noah Sin; additional reporting by Donny Kwok; Editing by Rashmi Aich

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