SHANGHAI, June 14 (Reuters) - Shanghai stocks closed at
three-month highs, while Hong Kong shares ended unchanged on
Tuesday, despite an overnight slump in U.S. stocks on fears of
aggressive U.S. rate hikes, as analysts expect China's growth to
rebound with more policy support.
The blue-chip CSI300 index rose 0.8% to 4,222.31,
while the Shanghai Composite Index gained 1% to 3,288.91
points, after dropping as much as 1.8%.
The Hang Seng index closed flat at 21,067.99, after
slumping as much as 1.7%, while the China Enterprises Index
lost 0.1%, to 7,333.61 points.
** Wall Street hit a confirmed bear market milestone amid a
Goldman Sachs forecast of a 75-basis-point interest rate hike at
the Federal Reserve's policy meeting on Wednesday.
** "U.S. inflation has direct impact on A-shares, as we can
see from the performance in recent two days," said Wang
Mengying, a stock index futures analyst at Nanhua Futures.
"China stocks performance will eventually depend on expectations
of domestic economic recovery."
** "However, if more aggressive rate hikes lead to less
aggregate global demand, domestic expectations would also be
** Authorities in China's capital Beijing are rushing to
contain a COVID-19 outbreak traced to a 24-hour bar, with a
health official saying the outbreak was "still
** "I think the worst is actually behind us when it comes to
the Omicron variant" said David Chao, global market strategist,
Asia Pacific (ex-Japan) at Invesco.
** "While we see growth challenged in the first half of
2022, we expect a rebound in the second half driven by a
combination of fiscal and monetary policy measures in contrast
with many Western developed countries."
** Foreign investors were net buyers of China stocks, with
Refinitiv data showing inflows of more than 7.1 billion yuan
($1.05 billion) through the Northbound leg of the Stock Connect
** Financials stocks jumped 2.7%, with banks
adding 1.5%, while brokers soared
4.8%, and real estate developers gained 2%.
** Energy shares rose 2.3% and automobiles
finished up 3.3%.
** Tech gaints listed in Hong Kong edged down
0.1%, with index heavyweights Alibaba Group down 2.5%
while Meituan was up 3.3%.
** BOC Hong Kong Holdings led gains in local
banks, rising 4.8% to become the biggest percentage gainer in
the Hang Seng index.
(Reporting by Shanghai Newsroom; Editing by Shailesh Kuber,
Louise Heavens and Uttaresh.V)