Summary Expectations of more monetary policy easing pushed the Shanghai index up 2.15 percent
HONG KONG (AFP) - Hong Kong and Shanghai stocks rose Monday after China s central bank cut interest rates for the second time in just over three months as it tries to boost the economy.
Hong Kong s benchmark Hang Seng Index ended up 0.26 percent, or 64.15 points at 24,887.44 on turnover of HK$79.70 billion ($10.29 billion).
On Saturday the central People s Bank of China cut interest rates by 25 basis points as it tries to infuse some zest into the economy, which last year grew at its weakest rate since 1990.
The reduction is the second after a similar move in late November, while last month the bank cut the percentage of funds banks must hold in reserve to try to boost lending.
It also comes just ahead of the start Thursday of the annual meeting of China s rubber-stamp legislature, the National People s Congress, at which Premier Li Keqiang is expected to deliver an address on the state of the economy.
There were mixed readings on the mainland s manufacturing sector, with an official gauge out of Beijing Sunday showing it contracted in February, while HSBC s purchasing managers index pointed to a pick-up in growth.
Buying was also helped by news that the US economy grew 2.2 percent in the last quarter of 2014, slower than the 2.6 percent first estimated but not as slow as the 2.1 percent forecast.
Insurance giant AIA added 3.72 percent to HK$47.35, Cheung Kong gained 1.89 percent to HK$156.40 and Lenovo rose 1.17 percent to HK$12.10.
Sino Land lost 0.95 percent to HK$12.56 and HSBC shed 0.36 percent to HK$69.55.
In mainland China the Shanghai Composite Index rose 0.79 percent, or 25.99 points, to 3,336.29 on turnover of 410.3 billion yuan ($65.4 billion).
The Shenzhen Composite Index, which tracks stocks on China s second exchange, jumped 2.06 percent, or 33.60 points, to 1,663.65 on turnover of 373.8 billion yuan.
"The market was active after the rate cut," Haitong Securities analyst Zhang Qi told AFP, adding investors bought small-cap shares instead of heavyweight plays such as banks.
Expectations of more monetary policy easing pushed the Shanghai index up 2.15 percent last Thursday.
Banks were mixed in Shanghai.
Agricultural Bank of China rose 0.60 percent to 3.36 yuan while ICBC slipped 0.22 percent to 4.57 yuan.
Stocks related to environmental protection led gains on hopes the government will put more effort into combating pollution.
Zhejiang Feida Environmental Science & Technology surged by its 10 percent daily limit to 17.12 yuan in Shanghai, while Shenzhen-listed Hebei Sailhero Environmental Protection High-tech also shot up 10 percent to 19.32 yuan.
Firms linked to Internet finance were higher on speculative buying.
Inner Mongolia Junzheng Energy & Chemical Industry, which has a stake in the firm managing e-commerce giant Alibaba s popular online fund, jumped 6.84 percent to 19.36 yuan in Shanghai.
