(Corrects the Hang Seng’s closing level in the 2nd paragraph)
* Hang Seng index advances 2.1 pct
* China Enterprises index HSCE rises 2.7 pct
* HSI financial sector sub-index is 2.4 pct higher; property sector up 1.1 pct
March 6 (Reuters) - Hong Kong shares rebounded sharply on Tuesday, as Asian markets regained ground amid signs U.S. President Donald Trump is facing growing pressure from political allies to pull back from proposed steel and aluminium tariffs.
The Hang Seng index rose 2.1 percent, to 30,510.73, while the China Enterprises Index gained 2.7 percent, to 12,311.54 points.
“Investors have been nervous about the prospects of a trade war, and any signs of it not materializing would give the market relief,” said Linus Yip, Hong Kong-based chief strategist at First Shanghai Securities.
On Monday, the Hang Seng dropped 2.3 percent.
Resources shares jumped on Tuesday, as China said it would ensure steel and coal capacity cuts would be market-based and prevent rule violations. Aluminium maker Chalco surged more than 4 percent.
Banking stocks also posted robust gains, on news that China’s banking regulator plans to cut the provision coverage ratio for commercial banks to 120-150 percent from 150 percent. Yip of First Shanghai Securities said the move would allow banks to lend more and would increase their profit.
The sub-index of the Hang Seng tracking energy shares climbed 2.8 percent while the IT sector rose 2.98 percent and property sector by 1.05 percent.
The top gainer on Hang Seng was Want Want China Holdings Ltd up 4.4 percent, while the biggest loser was Bank of East Asia Ltd, down 0.59 percent.
China’s main Shanghai Composite index closed up 1.02 percent at 3,256.9263 points while its blue-chip CSI300 index ended 1.23 percent higher.
MSCI’s Asia ex-Japan stock index was firmer by 1.53 percent while Japan’s Nikkei index closed up 1.79 percent.
The yuan was quoted at 6.3388 per U.S. dollar at 0824 GMT, or 0.04 percent firmer than the previous close of 6.3419.
Among H-shares in Hong Kong, the top gainers were BYD Co Ltd up 5.74 percent, followed by New China Life Insurance Co Ltd gaining 5.4 percent and CITIC Securities Co Ltd up by 4.15 percent.
The three biggest H-shares percentage decliners were Huaneng Power International Inc which was down 0.40 percent, and Great Wall Motor Co Ltd and Sinopharm Group Co , both off 0.3 percent. (Reporting by the Shanghai Newsroom; Editing by Richard Borsuk)