HONG KONG: Hong Kong shares finished higher on Monday amid easing concern over the Japan nuclear situation and continuing caution over Libya as investors largely shrugged off Beijing's latest tightening move.
The benchmark Hang Seng Index finished up 1.73 percent at 22,685.22, breaching the 200-day moving average for the first time in three days. The China Enterprises Index climbed 1.75 percent.
The Shanghai Composite Index edged up 0.08 percent.
HIGHLIGHTS:
Foxconn International Holdings Ltd led gains, up 5.2 percent, on what analysts said was speculative buying ahead of its earnings announcement on March 30. A 12 percent slide last week made Foxconn technically oversold, with its relative strength index (RSI) hitting the lowest-ever level of 9.9 last Friday. A reading below 30 suggests a stock is oversold.
China energy stocks largely benefited as Brent climbed 1.5 percent on Monday towards $116 per barrel after Western forces launched a military campaign against Libya, stoking fears that violence will intensify in North Africa and the Middle East, source of more than a third of the world's oil.
CNOOC Ltd gained 3.6 percent, while Petrochina Co Ltd also boosted by a record quarterly profit announced last week, advanced 3.3 percent. But China Resources Power Holding Co Ltd lost a further 1.4 percent after it announced a 7.8 percent fall in net 2010 profit last week.
PCCW Ltd , chaired by media tycoon Richard Li, climbed more than 4.6 percent on news the company is studying a plan to spin off its telecommunications operations to form Hong Kong's first listed business trust as the company struggles to maintain margins in a highly competitive market.
Property counters continued their bullish trend from last week, with China Overseas Land & Investment Ltd , the country's largest developer by market value, up 3.83 percent at a five week high. China Resources Land Ltd finished up 3.9 percent and Henderson Land Development Co Ltd gained 2.3 percent.
DAY AHEAD:
Key earnings in focus on Tuesday include China Coal Energy Co Ltd , China Life Insurance Co Ltd , the largest insurer in the country by market capitalisation and PCCW Ltd
Investors will continue to keep an eye on developments in Libya and Japan as markets there resume trading on Tuesday.
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