Hong Kong stocks rally most in six weeks as de­vel­op­ers re­bound

China Daily (USA) - - BUSINESS MARKETS - By BLOOMBERG

Hong Kong stocks climbed the most in six weeks, led by fi­nan­cial com­pa­nies and casino op­er­a­tors, as in­vestors spec­u­lated US mon­e­tary pol­icy will re­main ac­com­moda­tive and re­cent equity losses were ex­ces­sive.

The Hang Seng Index closed 1.6 per­cent higher, after touch­ing its low­est level since Sept 1 on Monday. A gauge of real es­tate com­pa­nies ral­lied the most among in­dus­try groups after slump­ing 8 per­cent from last month’s high, with China Over­seas Land & In­vest­ment Ltd climb­ing the most since June. The Shang­hai B-share index added 2.6 per­cent after plung­ing the most in nine months in the pre­vi­ous ses­sion.

The Bloomberg Dol­lar Spot Index ex­tended Monday’s re­treat from a seven-month high after data showed New York man­u­fac­tur­ing un­ex­pect­edly shrank and US fac­tory out­put barely grew. A rally in Hong Kong’s bench­mark index ran out of steam in the past month as the gauge strug­gled to climb above 24,000, traders boosted bets on higher US bor­row­ing costs and a flood of money from main­land funds into the city’s shares slowed to a trickle.

“The ris­ing dol­lar had led to out­flow pres­sures from emerg­ing mar­kets, but last night the dol­lar soft­ened,” said Steven Le­ung, ex­ec­u­tive di­rec­tor at UOB Kay Hian (Hong Kong) Ltd. “In the short-term it won’t be that easy to reach 24,000 be­cause the ris­ing US dol­lar is caus­ing funds to leave and south­bound flows have been slower.”

The Shang­hai Com­pos­ite Index rose 1.4 per­cent to its high­est close since Sept 8, led by in­dus­trial com­pa­nies. In­vestors are await­ing China data in­clud­ing gross do­mes­tic prod­uct, re­tail sales and in­dus­trial out­put due on Wed­nes­day. “China’s third-quar­ter growth will be an­nounced to­mor­row and the mar­ket is quite pos­i­tive about it, ex­pect­ing it will main­tain 6.7 per­cent growth,” said Li­nus Yip, a Hong Kong-based strate­gist at First Shang­hai Se­cu­ri­ties Ltd.

The Hang Seng China En­ter­prises Index ad­vanced 1.9 per­cent, its big­gest jump since Au­gust. A gauge of prop­erty shares on the Hang Seng Index rose 2 per­cent, the big­gest in­crease since Sept 5. China Over­seas Land climbed 4.9 per­cent, and China Re­sources Land Ltd ad­vanced 3.4 per­cent. Sino Land Co and New World De­vel­op­ment Co gained more than 1.5 per­cent.

Wynn Ma­cao Ltd surged 4 per­cent, and MGM China Hold­ings Ltd added 3.4 per­cent. Galaxy En­ter­tain­ment Group Ltd rose 2.7 per­cent.

China’s third-quar­ter growth will be an­nounced to­mor­row and the mar­ket is quite pos­i­tive about it, ex­pect­ing it will main­tain 6.7 per­cent growth.” Li­nus Yip, a Hong Kong-based strate­gist at First Shang­hai Se­cu­ri­ties Ltd

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.