* Hang Seng up 0.5%, H-shares add 0.4%
* Governments across the world seek to scale back lockdown
* Market awaits cues from China market re-open Weds - analyst
HONG KONG, May 5 (Reuters) - Hong Kong shares on Tuesday recouped some of the previous session’s sharp losses, tracking gains in broader Asia, as countries laid out plans to ease coronavirus-induced restrictions.
** The Hang Seng index rose 0.5% to 23,742.13 points, having lost more than 4% on Monday as U.S.-China tensions simmered. The Hang Seng China Enterprises index gained 0.4% on Tuesday. ** The sub-index of the Hang Seng tracking energy shares rose 1.1%, the IT sector gained 0.8%, the financial sector was 0.1% higher and the property sector edged up 0.5%.
** Mainland China’s financial markets are closed until Wednesday for a public holiday. ** With China closed, Hong Kong stocks tracked gains in Asian markets and Wall Street on signs that economies across the world were gradually resuming economic activity.. ** “The fall was fast yesterday ... everybody saw Hong Kong market as an ATM (withdrawal of funds) with the A-share market shut. We are steadying a bit after that,” said Linus Yip, chief strategist at First Shanghai Securities in Hong Kong. “We will need to see how far A-shares fall tomorrow.”
** Hong Kong suffered its deepest economic contraction on record in the first quarter, with the worst drop since at least 1974, as the virus dealt a heavy blow to business activity, already in decline following months of anti-government protest last year. ** Interbank interest rates in Hong Kong fell across the curve, indicating a rising availability of cash in the city following recent central bank interventions. ** In the wider region, MSCI’s Asia ex-Japan stock index was firmer by 0.8%. ** The short and one-factor leveraged Hang Seng index, which is designed to replicate the payoff of a short or leveraged portfolio and is linked to the movements of the Hang Seng Index, was lower by 0.56% at midday at 5,486.42 points.
Reporting by Noah Sin; Editing by Aditya Soni