Alexa
  • Directory of Taiwan

Hong Kong shares jump 1.4 percent, boosted by Wall Street gains

Hong Kong shares jump 1.4 percent, boosted by Wall Street gains

Hong Kong shares rose Thursday, buoyed by strength on Wall Street, with locally-listed mainland Chinese stocks out-performing the broader market.
The blue chip Hang Seng Index rose 288.51 points, or 1.4 percent, to 20,867.26.
The Hang Seng tracked overnight gains in U.S. stocks, which rose on economic reports suggesting moderate growth, easing inflation pressure. But traders see limited upside, with the Hang Seng likely to hover between 20,500 and 20,800 for rest of the month.
"There are no fresh supporting leads from the local bourse to send the index higher," said Value Convergence CEF securities director Louis Tse.
Investors were eyeing mainland China's fixed asset investment data due Friday, traders said, especially after the State Council said late Wednesday that the country will tighten monetary policy and work hard to reduce excess liquidity.
"The mainland's tightening concerns remain an overhang," said Eugene Law, head of research of Celestial Securities.
Oil company CNOOC Ltd. jumped 3.6 percent to HK$8.30, on higher crude prices and on hopes that Beijing will soon give out a greenlight for red chip companies to list in China. Red chips are mainland companies traded and registered in Hong Kong.
Phone operator China Mobile (Hong Kong) Ltd. gained 0.8 percent to HK$75.20 on hopes for a third-generation license and a possible listing on the mainland.
Its smaller rival, China Unicom, rose 2.9 percent at HK$11.94.
Commodities stocks staged a robust rally, led by Chalco, the world's second largest alumina producer by output after Alcoa. The stock soared 10.7 percent to HK$12.18, extending a 4.8 percent gain in the previous session.
Shenhua Energy, China's largest coal producer by output, jumped 5.4 percent to HK$26.15. Its smaller rival Yanzhou Coal rose 6.7 percent to HK$11.40 on expectations that China's demand for coal will remain robust, traders said.
__
On the Net:
http://www.hkex.com.hk