China, HK stocks rebound as currencies stabilize

jueves 21 de enero de 2016 01:07 GYT

* CSI300 +0.7 pct; SSEC +0.5 pct; HSI +0.3 pct

* Hong Kong dollar strengthens, offshore stabilizes

* IMF reiterates support for HK's Linked Exchange Rate System

SHANGHAI, Jan 21 (Reuters) - China and Hong Kong stocks rebounded on Thursday morning, aided by signs of stabilisation in their currencies even as underlying fragility in global financial markets tempered investors' mood.

China's bluechip CSI300 index reversed initial losses and ended morning trade up 0.7 percent, at 3,195.07 points. The Shanghai Composite Index gained 0.5 percent, to 2,991.78 points.

Hong Kong stocks, which fell to 3-1/2 year lows on Wednesday on currency depreciation worries, was also firmer by lunch time.

Investors have been unnerved by the Hong Kong dollar's sharp slide in the week, with Wednesday seeing the weakest level for the currency against the U.S dollar in more than eight years.

It managed to bounce in morning trade on Thursday after Hong Kong authorities vowed to keep the city's currency stable, and expressed confidence in handling capital outflows.

The International Monetary Fund (IMF) reiterated its continued support for Hong Kong's Linked Exchange Rate System, a regime that ties the value of the Hong Kong dollar with the U.S. dollar.   Continuación...