HONG KONG Jan 3 (Reuters) – Hong Kong shares ended
the first trading day of the new year stronger, with the Hang
Seng Index hitting the highest in almost three weeks led by
strength in Chinese oil stocks, which were driven by a number of
factors from China and Iran.

The Hang Seng Index closed up 2.4 percent at
18,877.41. The China Enterprises Index of top mainland
listings in Hong Kong finished 3.01 percent higher at 10,235.17.

Financial markets in mainland China were closed on Tuesday
for the New Year holiday and will reopen on Wednesday.

HIGHLIGHTS:

* PetroChina Co Ltd gained 4.5 percent, China
Petroleum & Chemical Corp (Sinopec) rose 5.5 percent,
and CNOOC Ltd firmed 4.1, with funds seen accounting
for stronger volumes for PetroChina and Sinopec. Investors were
betting on stronger demand from China on fresh policy support to
counter a slowdown in economic growth after a survey showed on
Sunday that downward risks persisted despite narrowly avoiding a
contraction in December.. A plan by the National
Development and Reform Commission (NDRC) to allow mainland oil
prices to be dictated by the market could lift profits at the
country’s three oil majors, further boosting sentiment, traders
said.

* Mengniu Diary Co Ltd gained 5.7 percent in more
than twice its 30-day average volume after China’s quality
watchdog said it had found no further cases of milk tainted by
high levels of carcinogenic mildew in tests of products by major
dairy producers.. Mengniu slumped 31 percent
last week after its said its Sichuan plant had destroyed
products found by a government quality watchdog to contain the
cancer-causing substance aflatoxin.

(Reporting by Clement Tan; Editing by Chris Lewis)