HK stocks rise, led by casinos and lenders

Hong Kong stocks recovered some ground after sinking the most in two weeks on Monday as investors judged Hillary Clinton the winner of a US presidential debate. Casinos and banks led gains.

The Hang Seng Index climbed 1.1 percent at the close, rising along with US stock-index futures and the Mexican peso. Sands China Ltd rebounded from its lowest level in almost a month, while Galaxy Entertainment Group Ltd advanced 1.6 percent before holidays next week in China. Industrial & Commercial Bank of China Ltd paced gains by lenders. The Shanghai Composite Index erased losses to end the day 0.6 percent higher.

Hong Kong's benchmark equity index has outperformed its Asian peers this quarter with a 13 percent rally, helped by rising flows from the mainland as investors sought shelter in cheaper valuations and a dollar-pegged currency. That's driven a valuation gap between dual-listed shares in the city and mainland exchanges to nearly the narrowest since 2014. Clinton and Donald Trump clashed over trade, the economy and race relations in the highly-anticipated exchange.