Hong Kong, China shares up

Hong Kong stocks ended the week with mild gains, led by large-caps, as investors used earlier weakness to load up on laggard stocks with a view that the market may head higher in coming months. China Unicom Ltd was the biggest gainer.
Energy, supported by rising oil prices, outperformed the broader market for the second straight session after recording one of the steepest declines in the previous week, with the Hang Seng energy sub-index gaining 1.5 percent on the day and 0.8 percent on the week.
"I would be wary if oil prices continue to hit new highs," said Benjamin Chang, Chief Executive Officer at LBN Advisers Ltd in Hong Kong. "But we probably have seen the lows (in the stock markets) for the year." The benchmark Hang Seng Index traded up 1.0 percent on Friday and added 0.5 percent on the week at 24,138.3, returning to levels before Tuesday's dip after Standard & Poor's lowered its credit outlook for the United States. While Hong Kong markets will be closed on Friday for the Good Friday-Easter long weekend and will only reopen April 26, China's market will trade as usual on Friday as well as Monday.
Turnover neared HK$80 billion on Thursday, rising for the second day running, snapping a downward trend that lasted since April 8. But analysts said high oil prices are a key risk to equities and could lead to lower turnover if prices keep rising. While China Unicom rose 5.2 percent to hit a two-year high on Thursday, China Mobile Ltd lost 0.9 percent after its earnings matched expectations but failed to lift sentiment with no change in its growth outlook.
"Competition remains our key concern for China Mobile," said Daiwa's Marvin Lo in a note. "Although the proportion of value-added service revenue is rising, voice revenue appears to be declining faster." Lo noted in the same note that China Mobile's 3G penetration rate of 4.5 percent among its subscribers represents the lowest among its China telecoms peers, compared to China Unicom's 10.6 percent.
China's main stock index ended up 0.7 percent on Thursday, led by large-cap shares such as banks and steel makers, as investor confidence was buoyed by gains in global markets. The benchmark Shanghai Composite Index ended at 3,026.7 points, after it rose 0.3 percent on Wednesday.
Speculation in steel makers led the index up, while six steel makers listed on the Shanghai and Shenzhen market, jumped their 10 percent daily limit. The sector was also supported by China Iron & Steel Association data showing that China's daily crude steel output hit an all-time high of 1.979 million tonnes in the first 10 days of April. Laiwu Steel and Jinan Iron and Steel continued strong, jumping their 10 percent daily limit for the seventh day as they proposed a share swap deal to form a combined entity. Almost all 16 banks listed on the Shanghai and Shenzhen markets rose. China Minsheng Bank rallied 1.2 percent and Bank of Ningbo rose 1.2 percent.