July 21, 2020 / 8:40 AM / 23 days ago

Hong Kong stocks end higher on EU stimulus deal, virus vaccine hopes

* HK->Shanghai Connect daily quota used -5.2%, Shanghai->HK daily quota used 7.1%

* HSI +2.3%, HSCE +1.5%, CSI300 +0.2%

* FTSE China A50 -0.1%

July 21 (Reuters) - Hong Kong stocks ended higher on Tuesday, tracking wider gains in other Asian markets, as investors cheered European Union's stimulus plan to revive the coronavirus-hit economies, while hopes for a vaccine also boosted risk appetite.

** At the close of trade, the Hang Seng index was up 577.67 points or 2.31% at 25,635.66. The Hang Seng China Enterprises index rose 1.46% to 10,445.42.

** Around the region, MSCI's Asia ex-Japan stock index was firmer by 2.05%, while Japan's Nikkei index closed up 0.73%.

** Asian shares hit a five-month high on Tuesday after European Union leaders agreed on a massive stimulus plan for their coronavirus-blighted economies.

** Early data from trials of three potential COVID-19 vaccines released on Monday, including a closely-watched candidate from Oxford University, increased confidence that a vaccine can train the immune system to recognize and fight the novel coronavirus without serious side effects.

** Leading the gains, the Hang Seng IT sub-index surged 7.5% in its best day since Nov. 2, 2018.

** E-commerce giant Alibaba Group Holding's Hong Kong shares ended up 7.3% after Ant Group, its fintech arm, said it has started the process of a dual listing in Hong Kong and on Shanghai's Nasdaq-style Star Market.

** The strong tech rally came after Hang Seng Indexes Co Ltd said it would launch the Hang Seng TECH Index on July 27, and after Ant Group announced a dual-listing plan.

** Hong Kong shares shrugged off concerns over rising political tensions between China and the UK after Britain announced it would suspend its extradition treaty with Hong Kong.

** At close, China's A-shares were trading at a premium of 32.68% over Hong Kong-listed H-shares.

** The price-to-earnings ratio of the Hang Seng index was 10.97 as of the last full trading day while the dividend yield was 3.3%. (Reporting by the Shanghai Newsroom; Editing by Rashmi Aich)

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