Hang Seng up 2.59% at 18,293 points (Il Sole 24 Ore Radiocor) - Hong Kong , 12 Jul - Hong Kong share prices closed sharply higher, extending yesterday's rally and rebounding from recent losses amid mixed Asian markets.

Investor sentiment was boosted by key US data showing that inflation in the world's biggest economy had fallen more than expected in June to 3% annually, down from 3.3% in May, rekindling hopes of an interest rate cut at the central bank's September meeting.

Traders looked ahead to a meeting of China's political leaders from July 15 to 18 known as the Third Plenum, amid expectations that important economic measures could be announced during the event.

The much-anticipated policy meeting, a major gathering of the top members of the ruling Communist Party of China that typically happens only once every five years, is expected to focus on high local government debt levels and a push for advanced manufacturing.

In the city's stock market dealings tech shares soared, with the Hang Seng Tech Index closed up 2.32%.

Property shares snapped a four-day losing streak, with the Hang Seng Mainland Properties index soaring 3.85%.

The Hang Seng index closed up 2.59% at 18,293 points, further rebounding from a near three-month low hit Monday and after posting in June its first monthly loss since January.

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(RADIOCOR) 12-07-24 12:08:45 (0265) 5 NNNN