June 22 (Reuters) - Hong Kong’s benchmark Hang Seng Index rose on Monday on hopes that political tensions in the city were easing after lawmakers vetoed a Beijing-backed electoral reform package last week.
Chief Executive Leung Chun-ying said on Friday he would bring a series of economic initiatives to lawmakers this week, and called for their support.
“It’s time for all of us to move on,” Leung told reporters. “We should try to forge consensus on various economic and livelihood issues.”
But trade was cautious ahead of the reopening of mainland China markets on Tuesday after a long weekend. Investors are anxious to see if the plunge seen on Friday will continue, or if sharply lower prices will attract bargain hunters.
The Hang Seng index rose 0.4 percent, to 26,878.03 points by the lunch break. The China Enterprises Index, which tracks Hong Kong-listed mainland companies, gained 0.6 percent, to 13,259.14 points.
“Players were cautious in quiet trade because China markets are on holiday,” said Alfred Chan, chief dealer at Hong Kong-based Cheer Pearl Investment.
Telecom, energy and industrials shares were firm, while materials eased.
The Hong Kong market showed little immediate reaction to new proposals by Greece to its creditors in a last-ditch bid to stave off a debt default. (Reporting by Donny Kwok; Editing by Kim Coghill)