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Hong Kong - Hong Kong and Chinese stocks rose Thursday, after China reassured markets it would not allow the yuan to plummet in the wake of a surprise devaluation this week.
Hong Kong's benchmark Hang Seng Index added 0.43% to end the day at 24 018.8 on turnover of HK$86.81bn.
China spooked global financial markets when it devalued the yuan by almost 2% on Tuesday - and cut the rate at which it is set for the two following days - raising questions about the health of the world's second-largest economy.
The People's Bank of China (PBoc) said this was part of a shift to a more market-oriented exchange rate policy, but the move was widely seen as a devaluation designed to boost the country's weakening trade flows.
A smaller cut on Thursday, and news the central bank intervened to stabilise the yuan the previous day, however, reassured dealers Beijing would not allow its currency to plummet.
"The PBoC has drawn a line in the sand and given verbal guidance to the market," Eddie Cheung, a strategist at Standard Chartered in Shanghai, told Bloomberg News.
"If there are distortions, such as a very large gap between the onshore and offshore rates, the central bank will come in and stablise the market."
On the mainland, the benchmark Shanghai Composite Index closed up 1.76% to 3 954.56 on turnover of 577.4 billion yuan.
The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 2.21% to 2 298.79 on turnover of 497.7 billion yuan.
Shares in Tianjin Port were halted in Hong Kong this morning after enormous explosions in a storage facility killed at least 44 people and injured more than 500 in the major container port.
Iron-ore shipments and stocks were disrupted by the explosion, which analysts said could drive up the price of the steel ingredient, although the company said in a stock exchange filing its terminal is operating normally.
Meanwhile, trading sector stocks were among the top gainers in Shanghai on expectations of an export boost from a weaker yuan.
Shanghai Material Trading jumped by its 10% daily limit to 14.30 yuan and Xiamen ITG Group rose 2.61% to 10.61 yuan.
Transport-related stocks also rose in Shanghai. Dazhong Transportation surged 8.70% to 15.49 yuan and Daqin Railway added 4.08% to 10.98 yuan.
Chinese carriers enjoyed a reprieve in Hong Kong after two days of heavy losses over concerns a weaker yuan could make it more expensive to service their dollar-denominated debt.
China Eastern Airlines rose 1.33% to HK$5.33 and Air China added 0.29% to HK$7.01.
Lenovo dropped 9.09% to HK$7.70 after the world's biggest personal computer maker said first-quarter net profit more than halved, and announced it would cut around 3 200 staff from its non-manufacturing workforce.
