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Hong Kong stocks close up 0.27%

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(Globalpost/GlobalPost)

Hong Kong stocks bounced back from earlier losses Tuesday to end 0.27 percent higher, as traders shrugged off fears that the Cyprus bailout deal could be a template for future eurozone bank rescues.

The benchmark Hang Seng Index added 59.93 points to 22,311.08 on turnover of HK$64.1 billion ($8.26 billion).

Jeroen Dijsselbloem, who heads the Eurogroup of finance ministers, sowed panic on regional markets after he said the cost of bank recapitalisations should not fall on the public sector, but on bondholders, shareholders and, if necessary, uninsured deposit holders.

His comment to the Financial Times, which came just hours after a last-minute deal to save the Cyprus financial sector, sparked concerns that the bailout of the Mediterranean island could set a precedent for other regional bank rescues.

Dijsselbloem later released a statement via Twitter saying Cyprus was a "specific" case.

"Cyprus has been in the headlines for more than a week now and its impact may gradually fade," Daniel So, a Sun Hung Kai Financial wealth management strategist, told Dow Jones Newswires.

Hong Kong property developer Henderson Land jumped 5.5 percent to HK$52.75 after posting a 28 percent on-year rise in 2012 underlying net profit to HK$7.1 billion.

Internet giant Tencent rebounded 3.2 percent to HK$248.40, snapping losses over the last three sessions. But British banking giant HSBC slipped 0.5 percent to HK$82.90 owing to lingering concerns about European banks.

Chinese shares ended down 1.25 percent. The benchmark Shanghai Composite Index fell 29.05 points to 2,297.67 on turnover of 91.8 billion yuan ($14.8 billion).

"The fall may be triggered by concerns over the strength of the domestic economy. The market also had some downward pressure after the rebound last week," Haitong Securities analyst Zhang Qi told AFP.

Coal firms led the declines on weak corporate earnings, with Yanzhou Coal Mining slumping 5.19 percent to 17.54 yuan while Yangquan Coal Industry dropped 3.36 percent to 13.81 yuan.

Steel makers slid on profit taking, with Chongqing Iron and Steel losing 4.64 percent to 3.08 yuan and Xinjiang Ba Yi Iron & Steel falling 2.47 percent to 5.53 yuan.

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http://www.globalpost.com/dispatch/news/afp/130326/hong-kong-stocks-close-027-0