China, Hong Kong stocks rise on trade deal optimism, Wall-Street cheer

SHANGHAI, Dec 17 (Reuters) - China’s blue-chip CSI300 index rose to a nearly eight-month high on Tuesday morning, while Hong Kong’s stock benchmark climbed more than 1%, buoyed by trade deal optimism and Wall Street’s run to all-time highs.

** The CSI300 index rose 1.1% to 4,030.91 at the end of the morning session, the highest level since April 24. The Shanghai Composite Index gained 1% to 3,013.25.

** The Hang Seng index added 1.1% to 27,815.17, as the Hong Kong-listed shares of Chinese tech giant Alibaba jumped 2% to the highest level since their Nov. 26 debut. The Hong Kong China Enterprises Index gained 1.7% to 10,966.04.

** The preliminary deal between Washington and Beijing will double U.S. exports to China, White House adviser Larry Kudlow told Fox News on Monday. The United States will also reduce some tariffs on Chinese goods under the agreement.

** Morgan Stanley said in a report on Monday that the “Phase 1” trade deal should benefit Chinese companies with sizeable U.S. revenue exposure, with historical evidence suggesting that IT and consumer discretionary sectors are likely to re-rate the most.

** Sentiment is also aided by better-than-expected November growth in China’s industrial and retail sectors.

** In a fresh sign that Beijing will continue to support the economy with fiscal stimulus, China’s state planner said on Tuesday it approved eight fixed-asset investment projects in November worth a combined 7.1 billion yuan. ** China’s CSI300 financial sector sub-index rose 1.7%; the consumer staples sector was up 0.73%, the real estate index up 2.42% and the healthcare sub-index up 0.36%. ** Chinese H-shares listed in Hong Kong rose 1.74% at 10,966.04, while the Hang Seng Index was up 1.12% at 27,815.17. ** The smaller Shenzhen index was up 0.96% and the start-up board ChiNext Composite index was higher by 0.91%. ** Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.83% while Japan’s Nikkei index was up 0.47%. ** The yuan was quoted at 6.9965 per U.S. dollar, 0.02% weaker than the previous close of 6.9949. ** The largest percentage gainers in the main Shanghai Composite index were Nanjing Chemical Fibre Co Ltd, up 10.11%, followed by Aerospace Communications Holdings Co Ltd , gaining 10.07% and Shanghai Greencourt Investment Group Co Ltd, up by 10.06%. ** The largest percentage losers were Beijing Huaye Capital Holdings Co Ltd, down 9.68%, followed by Skshu Paint Co Ltd, losing 4.17% and Chongqing Brewery Co Ltd , down by 4.14%. (Reporting by Samuel Shen and John Ruwitch; Editing by Rashmi Aich)