November 10, 2016 / 2:32 AM / 2 years ago

Hong Kong stocks up 2 pct as Trump fears ease; China also up

SHANGHAI, Nov 10 (Reuters) - Hong Kong stocks rebounded over 2 percent on Thursday, joining a global rebound as shocked investors picked up the pieces after Republican Donald Trump’s surprise victory in the U.S. presidential election.

Hong Kong’s benchmark index tumbled over 2 percent on Wednesday as Trump’s win initially roiled global markets, but some of the anxiety has faded after a positive reaction on Wall Street, which chose to focus on his plans for tax cuts, infrastructure spending and deregulation.

Thomas Poullaouec, managing director of State Street Global Advisors Asia, said that despite some short-term volatility after the election, “this removes some uncertainty in the market, and by removing uncertainty, we might see a more positive outlook down the road, if history is any guide.”

The Hang Seng index was up 1.9 percent at 22,836.97 points at 0217 GMT, recovering much of Wednesday’s losses.

There were also signs that mainland China investors had sought bargains during Hong Kong’s market tumble, with money flowing into Hong Kong shares via the Shanghai-Hong Kong Stock Connect surging to 4.8 billion yuan ($707.03 million) on Wednesday.

China shares also firmed.

The CSI300 index rose 1.4 percent to 3,401.21, while the Shanghai Composite Index gained 1.3 percent to 3,168.97. ($1 = 6.7890 Chinese yuan renminbi) (Editing by Kim Coghill)

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