HK stocks rise, led by casinos and lenders
Hong Kong stocks recovered some ground after sinking the most in two weeks on Monday as investors judged Hillary Clinton the winner of a US presidential debate. Casinos and banks led gains.
The Hang Seng Index climbed 1.1 percent at the close, rising along with US stock-index futures and the Mexican peso. Sands China Ltd rebounded from its lowest level in almost a month, while Galaxy Entertainment Group Ltd advanced 1.6 percent before holidays next week in China. Industrial & Commercial Bank of China Ltd paced gains by lenders. The Shanghai Composite Index erased losses to end the day 0.6 percent higher.
Hong Kong’s benchmark equity index has outperformed its Asian peers this quarter with a 13 percent rally, helped by rising flows from the mainland as investors sought shelter in cheaper valuations and a dollar-pegged currency. That’s driven a valuation gap between dual-listed shares in the city and mainland exchanges to nearly the narrowest since 2014. Clinton and Donald Trump clashed over trade, the economy and race relations in the highly-anticipated exchange.
“Investors prefer Clinton instead of Trump, and right now investors are still optimistic on the election results,” said Castor Pang, head of research at Core-Pacific Yamaichi Hong Kong. “The market is rebounding after a pullback yesterday, but the momentum isn’t strong.”
The Hang Seng Index rose to 23,571.90 after slumping on Monday. The Hang Seng China Enterprises Index climbed 1.2 percent, extendingitsquarterlyadvanceto12 percent. The Shanghai Composite has gained 2.3 percent in the period.
Mainland investors continued to buy Hong Kong shares through a stock link with Shanghai on Tuesday, purchasing a net 3.59 billion yuan ($538 million), while foreign investors turned net sellers for a second day. The connect will be closed from Thursday in the run up to the holidays, which will shutter onshore financial markets for the whole of next week.
Futures on the S&P 500 Index gained 0.4 percent, Mexico’s peso rebounded from a record low and haven assets including the yen and gold fell.