December 1, 2016 / 8:22 AM / 2 years ago

Hong Kong stocks touch 3-week high on energy sector strength

Dec 1 (Reuters) - Hong Kong stocks closed at their highest level in three weeks on Thursday, buoyed by a surge in energy sector shares after OPEC agreed to a deal to reduce production, sending oil prices soaring.

The benchmark Hang Seng index pared early gains but still ended up 0.4 percent at 22,878.23 points, while the Hong Kong China Enterprises Index rose 0.6 percent to 9,892.31 points.

The world’s largest oil exporters agreed on Wednesday to cut output for the first time in eight years to ease a global supply glut that had halved the value of a barrel of crude.

Oil prices climbed over 10 percent after the OPEC deal.

Energy shares rallied 3.6 percent, with index heavyweight CNOOC Ltd soaring over 6 percent.

The market also benefitted from some support from Chinese stock markets which rose on better-than-expected manufacturing activity.

Sectors were mixed, with strength in energy and telecommunication shares offseting weakness in services and utilities sector. (Reporting by Jackie Cai and John Ruwitch; Editing by Kim Coghill)

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