Asia: Hang Seng jumps thanks to strong investment

Asian stocks closed mixed on Thursday with Hang Seng hitting a seven-year high as investors from mainland China piled in.

Hong Kong's Hang Seng gained 2.7%. The index was at one point rising as much as 6.8% to its highest since January 2008.

The Nikkei 225 was up 0.75% tapping a 15-year high thanks to a weaker yen at ¥120.18 against the dollar.

However, the Shanghai composite index fell 0.93%.

Chinese investors used their entire ¥10.5bn daily investment quota to buy the Stock Connect trading link.

"Mainland Chinese investors are piling into Hong Kong, which is seen as a bargain compared to already overbought Chinese markets," Accendo Markets analysts said.

Australia's ASX also lost 0.48% due to weaker commodities.

Gold slipped below $1,200 an ounce for the first time down by -0.62% at $1,195.60 in early trading on COMEX as the possibility of a June rate hike by the US Federal Reserve re-emerged driving treasury yields higher and dampening enthusiasm for precious metals.

Silver was also trading down 18 cents or 1.09% at $16.28 an ounce.

In company news, shares in mining giant BHP Billiton fell 1.79% after the open after both Credit Suisse and Investec downgraded their ratings on the company. Both banks expressed concerns about falls in iron ore and coal prices due to structural issues, namely a weaker Chinese economy, together with low cost supply. Rio Tinto also fell by 0.74%.

Elsewhere in Japan, Sony gained 2.68% after announcing plans to boost production of imaging sensors. Fast Retailing also rose 1.93% after raising its forecasts of a 11% increase in full-year profits. The retailer expects to post ¥200bn thanks to Uniqlo sales in Japan.