Updates closing prices
HONG KONG, Jan 20 (Reuters) - China and Hong Kong stocks jumped on Monday as a phone call between U.S. President-elect Donald Trump and Chinese President Xi Jinping eased some of the Sino-U.S. tensions.
China's blue-chip CSI300 Index .CSI300 climbed 0.5%, adding to the 2.1% gain seen last week. The Shanghai Composite Index .SSEC gained 0.1% to 3,244.38.
In Hong Kong, the benchmark Hang Seng .HSI jumped 1.8% to a three-week high.
The tech sector .HSTECH led the advancers offshore, with food delivery platform Meituan 3690.HK surging 5.2% and e-commerce firm JD.com 9618.HK climbing 7.3%.
Sentiment was upbeat on Monday after Trump and Xi discussed issues including TikTok, trade and Taiwan on Friday, as Trump heads to the White House again promising tariffs that could ratchet up tensions between the world's two biggest economies.
"It sends a positive signal to the markets, at least they're still talking," said Jason Chan, senior investment strategist at Bank of East Asia. "The market has already priced in a substantial amount of risks after Trump won the election, so there's a chance for a mean-reversion in sentiment after excessive pessimism."
Still, investors anticipate market volatility to increase in the coming days, as Trump is set to announce a slew of executive orders later on Monday covering security, deportations, tariff issues, and other campaign promises.
"A burst of policy announcements on Trump's Day One should give better direction, but is unlikely to provide markets with full clarity. This could create volatility," analysts at Barclays said in a note to clients.
On the policy front, China left benchmark lending rates unchanged for a third consecutive month earlier in the day, as expected, as a weakening yuan has limited Beijing's monetary policy efforts.
The one-year loan prime rate (LPR) CNYLPR1Y=CFXS was kept at 3.1%, while the five-year LPR CNYLPR5Y=CFXS was unchanged at 3.6% at the monthly fixing on Monday.
(Reporting by Hong Kong Newsroom; Editing by Shri Navaratnam and Sherry Jacob-Phillips)
((jiaxing.li@thomsonreuters.com;+ 852 63358304))
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