Hong Kong stocks rise for third day as energy, telecom firms gain

* HK->Shanghai Connect daily quota used 100%, Shanghai->HK daily quota used 3.6%

* HSI +1.4%, HSCE +1.4%, CSI300 +0.1%

* FTSE China A50 +0.1%

May 18 (Reuters) - Hong Kong stocks climbed for a third straight session on Tuesday, buoyed by gains in energy and telecom shares, while downbeat China and U.S. data eased fears of policy tightening.

** The Hang Seng index rose 1.4%, to 28,593.81, while the China Enterprises Index also gained 1.4%, to 10,654.30, both up for the third consecutive session.

** Leading the gains, the Hang Seng energy index and the Hang Seng telecommunications index advanced 3.4% and 1.8%, respectively.

** China Mobile ended up 2.7%, after the company approved plans for a potential HK$47.08 billion ($6.06 billion) listing in Shanghai.

** “Latest economic data from China and the United States showed growth slowed to some extent, raising hopes that monetary easing could continue,” said Linus Yip, chief strategist at First Shanghai Group.

** Data on Monday showed China’s factories slowed their output growth in April and retail sales significantly missed expectations as officials warned of new problems affecting the recovery in China.

** “The increase in regional coronavirus infections, including in Japan, Taiwan and India, was in sharp contrast with good control over the coronavirus outbreak in mainland China and Hong Kong, bolstering investor confidence in stocks in the two markets,” Linus added.

** On the other hand, there were also some signs of mainland investors hunting for bargains in some sectors, including in the tech sector, which had slumped due to anti-monopoly fears.

** The Hang Seng tech index added 1.5% on Tuesday, but it was still off nearly 30% from a record high hit on Feb. 18.

** China’s securities regulator has approved a fresh batch of nine exchange-traded funds (ETFs) that target technology shares listed in Hong Kong, financial media Caixin reported, potentially benefiting the battered sector.

** All eyes are now on Wednesday’s release of the minutes from the U.S. Federal Reserve’s policy meeting last month. ($1 = 7.7649 Hong Kong dollars) (Reporting by Luoyan Liu and Andrew Galbraith; Editing by Subhranshu Sahu)