June 7, 2016 / 8:12 AM / 2 years ago

Hong Kong shares gain over 1 percent as fears of US rate hike fade

June 7 - Hong Kong shares rose over 1 percent on Tuesday after U.S. Federal Reserve Chair Janet Yellen gave a largely upbeat assessment on the U.S. economic outlook, but gave few hints on when it will increase interest rates.

To some investors, the absence of a time frame in Yellen’s remarks on Monday suggested that the Fed may now be in no rush to raise rates after a surprisingly weak job report last week.

That contrasts sharply with comments by many Fed officials in May, which put the prospect of a rate rise firmly on the table as early as this month or next.

The Hang Seng index rose 1.4 percent to 21,328.24 points, while the China Enterprises Index gained 1.6 percent to 9,004.30 points.

Hong Kong-listed shares of HSBC rose 1.7 percent on news that the bank will restructure its global banking division to cut costs and make the business more “agile”.

Reporting by Samuel Shen and Pete Sweeney; Editing by Kim Coghill

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