Updates to market close

By Summer Zhen

HONG KONG, Aug 5 (Reuters) - China and Hong Kong stocks climbed for a second consecutive session on Tuesday, recovering from steep losses last week, as investor sentiments improved after a private-sector survey showed strong recovery in China's services activity in July.

** At the close, the Shanghai Composite index .SSEC was up 0.96% at 3,617.60, refreshing the highest level since January 2022.

** The blue-chip CSI300 index .CSI300 was up 0.8%, while Hong Kong benchmark Hang Seng .HSI advanced 0.68%.

** The S&P Global China General Services PMI rose to 52.6 in July from 50.6 in June, marking the fastest expansion since May 2024, fuelled by stronger demand and a rise in new export orders.

** The S&P PMI is considered a better read of trends among smaller, export-oriented firms, particularly along the east coast.

** The data suggests service sector activity picked up the pace in July, Goldman Sachs analysts said in a note on Tuesday, but the significant divergence between the official services PMI, which was down in July, and the S&P one implies "substantial variation across services sub-industries".

** Gains in Chinese stocks also tracked overnight Wall Street rally, fuelled by growing bets on U.S. interest rate cuts.

** Analysts expect some consolidation of gains in the next few weeks given the uncertainties around U.S.-China tariff rates and persistent deflationary pressures.

** Limited signs of further progress between U.S. and China in recent tariff negotiations have driven weaker positioning in China and Hong Kong stocks, Citi analysts said in a note on Tuesday.

** Some Hong Kong-listed firms have reported disappointing earnings, in contrast to the strong results from U.S. companies, particularly in the tech sector, which could lead to market consolidation, said Dickie Wong, Kingston Securities executive director.

** By sector, biotech firms .HSHKBIO and broader health care index .HSHCI advanced more than 3%, respectively, to lead gains in Hong Kong. Anime comic and game, and bank stocks outperformed in mainland A-shares.

** Gains in shares of Apple Inc.'s suppliers expanded in the afternoon, with Hong Kong-listed BYD Electronic 0285.HK jumping 7.7% and Shanghai-listed Foxconn Industrial Internet 601138.SS climbing 6.3%.

(Reporting by Summer Zhen; Editing by Harikrishnan Nair and Sherry Jacob-Phillips)

((summer.zhen@thomsonreuters.com; 852-3462-7739;))