Tuesday, September 7, 2010

HK shares end up 1.8 percent after Wall Street gains

HK shares end up 1.8 percent after Wall Street gains ; Hong Kong shares rose Monday, lifting the Hang Seng Index to the highest close in almost a month, after Wall Street gained Friday following better-than-expected U.S. jobs data, which bolstered the outlook for the global economy.

The blue-chip Hang Seng Index rose 384.27 points, or 1.8 percent, to 21,355.77 after trading between 21,139.79 and 21,398. 09. Market volume remained robust but fell slightly to 70.25 billion HK dollars from 72.65 billion HK dollars Friday.

The Dow Jones Industrial Average rose 1.24 percent to 10,447.93 Friday, its highest close since Aug. 10, after nonfarm payrolls fell by 54,000 in August, roughly half the decline that had been feared and matching the level of revised losses recorded the previous month.

The jobs data followed reports on housing and manufacturing that came in above expectations, casting new doubt on a double-dip recession. In Hong Kong, developers gained Monday after the government announced a land sale scheduled for next month.

The Hang Seng Property Index rose 2.8 percent to 28,223.64 after the Hong Kong Special Administrative Region's government said Friday a residential site in Kowloon had been triggered for sale after it accepted a developer's minimum guaranteed bid of 1.053 billion HK dollars.

The parcel of land, which is adjacent to the site that Kerry Properties bought at a government land auction on Tuesday for a higher-than-expected price of 1.285 billion HK dollars, will be auctioned Oct. 12.

Kerry Properties rose 1.5 percent to 40.60 HK dollars as investors believe it will be interested in the site. Sino Land rose 2.7 percent to 14.40 HK dollars, Sun Hung Kai Properties jumped 3.3 percent to 115.40 HK dollars and New World Development ended up 4.9 percent at 13.24 percent.

Foxconn climbed 2.2 percent to 5.12 Foxconn climbed 2.2 percent to 5.12 HK dollars. Esprit Holdings Ltd., a global fashion retailer, advanced 2 percent to 41.40 HK dollars. China Merchants Holdings (International) Co., an investor in the mainland's ports, rose 1.9 percent to 27.60 HK dollars. Cosco Pacific Ltd., one of Asia's largest container-terminal operators, gained 1.5 percent to 10.72 HK dollars.

Bourse operator Hong Kong Exchanges rose 5.1 percent to 130.90 HK dollars. Insurers advanced. China Life Insurance Co., one of the mainland's biggest insurers, gained 1.8 percent to 30.85 HK dollars. China Pacific Insurance (Group) Co. climbed 3 percent to 29.10 HK dollars.

In contrast, China Strategic plunged 40 percent to 0.31 HK dollars on its trading resumption Monday afternoon, after Taiwan's regulators rejected the company's planned 2.15 billion U.S. dollars purchase of American International Group's Taiwanese life- insurance unit, Nan Shan Life Insurance.

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