Hong Kong shares up 0.7% in first gain in 4 days

Hong Kong shares posted their first gain in four sessions on Tuesday as slower-than-expected inflation in China eased concerns about potential tightening moves in the world's second-largest economy.

The Hang Seng Index closed up 0.7% at 21,870.3 on Tuesday, its first gain since April 2. The China Enterprises Index of the top Chinese listings in Hong Kong climbed 1.7%.

The CSI300 of the leading Shanghai and Shenzhen A-share listings closed up 0.7%, the first rise in seven days. The Shanghai Composite Index had its first gain in five days, of 0.6%, and closed just above its 100-day moving average at about 2,223.9.

China's annual consumer inflation rate eased to 2.1% in March, compared with a 2.4% Reuters poll consensus and February's 3.2%. Producer price deflation deepened, dropping 1.9% in March, versus a 1.8% consensus and February's 1.6% year-on-year drop.

Food producer Want Want China rose 3% from Monday's one-month closing low on hopes that benign inflation will ease margin pressures.

Shoe retailer Belle International jumped 4.4% as investors cheered its positive first quarter same-store sales growth (SSSG). The 11% increase for its sportswear business in the first quarter was its fastest in more than four years, Bank of America-Merrill Lynch analysts said.

More Chinese economic data is expected later this week, with trade on Wednesday, then money supply and loan growth expected between April 10 and 15.