Hong Kong stocks closed higher Tuesday led by banks and properties shares, which were apt to be influenced by hopes of a rate cut expected after a meeting of the U.S. Federal Reserve later Tuesday.
The benchmark Hang Seng Index opened at 28,947.70, up 446.20 points or 1.57 percent, and closed at 29,226.84, up 725.74 points or 2.55 percent, reversing the ground it had lost on the previous day.
The market traded stable between 28,726.13 and 29,235.21 on a turnover of 89.96 billion HK dollars (11.55 billion U.S. dollars), rather modest if compared with that of Monday.
Analysts attributed the benchmark gain to expectations for the U.S. Federal Reserve decision in favor of a rate cut and the rebound of heavyweight stocks.
Any moves by the central bank of the world's largest economy, if not unexpected, would, along with favorable announcements ahead of the year end, help the Hong Kong market maintain its strength, possibly to try the 30,000 mark, they said.
But the modest turnover showed investors were still wavering over the potential uncertainties ahead, like the Chinese mainland's tightening measures.
Morgan Stanley said it expected China's consumption-related shares to rise for the one-year outlook and advised investors in favor of such stocks rather than companies relying on exports or involved in the energy and material sectors.
China Mobile, the mainland's largest mobile carrier and the largest stock on the Hong Kong stock exchange by market capitalization, went up 4.9 HK dollars, or 3.49 percent, to close at 145.5 HK dollars, contributing 130.44 points alone to the benchmark rise.
HSBC, another heavyweight on Hong Kong market, gained 2.9 HK dollars, or 2.17 percent, to close at 136.7 HK dollars, lifting the benchmark by 91.78 points.
All major categories gained ground, with the finance sector rising 681.54 points, or 1.64 percent, to close at 42,148.87, the utilities up 1,004.11 points, or 2.53 percent, at 40,687.86 and the commerce and industry sub-genre up 484.27, or 2.86 percent, at 17,399.84.
The properties sub-index soared 1,781.12 points, or 4.82 percent, to close at 38,756.44.
Cheung Kong, the Hong Kong-based properties conglomerate headed by billionaire Li Ka Shing, went up 6.5 HK dollars to close at 146.6 HK dollars.
SHK Properties, another major player in the property industry, also shot up 10.5 HK dollars, or 6.77 percent, to close at 165.5 HK dollars.
The China Enterprises Index was up 231.05 points, or 1.17 percent, at 19,971.78.
The Bank of China went up 0.04 HK dollars to 4.11 HK dollars while the BOC Hong Kong gained 0.6 HK dollars to close at 22.4 HK dollars.
China Life rose 0.7 HK dollars to close at 43.95 HK dollars.
PetroChina went up 0.34 HK dollars to 15.66 HK dollars while competitor Sinopec gained 0.52 HK dollars at 12.52 HK dollars, partly thanks to news that it was investing in a multi-billion project in Iran.
(Xinhua News Agency December 12, 2007)
