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Hong Kong stocks close up 1.05%

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(GlobalPost/GlobalPost)

Hong Kong stocks closed up 1.05 percent Tuesday as traders brushed aside lingering concerns over China's sluggish economic recovery.

The benchmark Hang Seng Index climbed 238.2 points to 22,924.25 on turnover of HK$51.30 billion ($6.61 billion).

Domestic property developers and Chinese state banks led the gains.

Bank of China rose 2.2 percent to HK$3.77, ICBC gained 1.7 percent to HK$5.50 and Bank of Communications added 1.2 percent to HK$6.10.

Among China property players, China Resources Land edged up 3.2 percent to HK$24.00 and China Overseas Land rose 2.4 percent to HK$23.75.

Conita Hung, a director at Amicus Asset Management, said she expects the market to breach the 23,000-mark this week.

She added that Chinese President Xi Jinping's upcoming visit to the United States next month, where he is expected to forge new bilateral trade initiatives, "will give the market more excuses to speculate".

Chinese stocks closed 1.23 percent higher to finish at a two-month high.

The benchmark Shanghai Composite Index surged 28.24 points to 2,321.32 on turnover of 120.4 billion yuan ($19.7 billion), the highest since March 25.

"Investors diverted some funds from shares of smaller companies to blue-chip shares for their cheap valuations," Haitong Securities analyst Zhang Qi told AFP.

Property developer Zhejiang Dongri jumped 7.60 percent to 10.19 yuan, Gemdale advanced 4.40 percent to 8.06 yuan and Poly Real Estate gained 3.27 percent to 12.64 yuan.

Media and entertainment shares were among the biggest losers as investors booked profits. BesTV New Media dropped 4.21 percent to 24.32 yuan, while Chinese Universe Publishing and Media lost 3.84 percent to 16.28 yuan.

-- Dow Jones Newswires contributed to this report --

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http://www.globalpost.com/dispatch/news/afp/130528/hong-kong-stocks-close-105