HONG KONG, May 5 (Reuters) - Hong Kong shares inched up on Wednesday as the energy sector rose on higher oil prices due to a steep drop in U.S. crude stocks, while bargain hunting boosted financial firms ahead of the reopening of China markets.
** By the midday break, the Hang Seng Index was up 2.66 points, or 0.01%, at 28,559.80, on course to gain for a second session. The Hang Seng China Enterprises index rose 0.17% to 10,784.15.
** The sub-index of the Hang Seng tracking energy shares rose 1.6%, while the IT sector dipped 1.32%, the financial sector climbed 0.73% and the property sector gained 0.81%.
** Oil prices rose nearly 1% on Wednesday, extending overnight gains, after industry data estimated U.S. crude stockpiles fell much more than expected last week reinforcing bullish views on fuel demand in the world's largest economy.
** Hong Kong tech index fell 1.5% to its lowest in two weeks, tracking a 1.9% dropped in the Nasdaq on Tuesday as some big tech names ran into profit-taking after U.S. Treasury Secretary Janet Yellen said rate hikes may be needed to stop the economy overheating.
** "New economy stocks and tech shares were under pressure tracking a softer Nasdaq overnight, but investors were willing to hunt for bargain ahead of the reopening of China markets," said Steven Leung, a sales director at UOB Kay Hian.
** Chinese financial and futures markets are closed from May 1 to 5 for the Labour Day holiday. Trade will resume on Thursday.
** The top gainer on the Hang Seng was Hang Seng Bank Ltd, which gained 3.29%, while the biggest loser was Haidilao International Holding Ltd , which fell 4.01%.
** Around the region, MSCI's Asia ex-Japan stock indexfirmed by 0.04%.
** The top gainers among H-shares were Postal Savings Bank of China Co Ltd, up 3.14%, followed by China Merchants Bank Co Ltd, up 3.06%, and Bank of Communications Co Ltd that gained 3.05%.
** The three biggest H-shares percentage decliners were Haidilao International, down 4.01%, Baidu Inc, which fell 3.57%, and Hansoh Pharmaceutical Group Company Ltd, down 3.26%.