Hong Kong stocks snapped a three-day losing streak to end 1.1 percent higher on Thursday, tracking a rebound in US equities and helped by an easing yen, with mainland oil producers leading a recovery in Chinese large-caps.
Qingling Motors was a standout, rallying as much as 19 percent following a state media report that the automaker may list in mainland China's stock market following an asset injection from shareholders.
The benchmark Hang Seng Index closed up 232.66 points at 21,938.22 on mainboard turnover of HK $80.5 billion (US $10.3 billion) compared with Wednesday's HK $78.8 billion.
The China Enterprises index of H shares, or Hong Kong-listed shares in mainland companies, gained 1.1 percent, or 135.47 points to 12,050.00. Risk appetite resurfaced, as the yen broke a three-day rally with easing concerns about the fallout from US subprime mortgage sector problems supporting a rebound on Wall Street, prompting investors to sell the yen again in carry trades.
But as June closes out, some were worried the market could pull back next month. "I'm cautious towards July," said Peter Pak, vice president at BOCI Research.
"June has been too good to be true. Everything went up like crazy. People may be taking a break. Watch for any daily turnover drop."
Oil producer PetroChina Co Ltd, the biggest boost to the H shares, jumped 2.5 percent to HK $11.62. Rival CNOOC Ltd, the top blue chip gainer, vaulted 4.1 percent to HK $8.81.
Other outperforming resource plays included Yanzhou Coal, which surged 4.5 percent to HK $11.06. China Shenhua Energy leapt 2.3 percent to HK $26.50. Mainland financial plays also recovered, with China Life, the day's most active stock, up 1.2 percent at HK $28.95.
China Construction Bank advanced 2.1 percent to HK $5.42, having earlier tapped all-time highs.
Ping An Insurance arrested its three-day losing streak, climbing 3.4 percent to HK $55.40. China Mobile, the biggest boost to the blue chips, finished up 1.7 percent at HK $84.90.
Chinese logistics company Sinotrans Ltd slid 3.7 percent to HK $3.65 in heavy trade after reports that express delivery company United Parcel Service Inc was selling up to US $59 million worth of shares in the company.
Qingling Motors, 40 percent owned by Isuzu Motors Ltd, soared 15.8 percent to HK $2.2, having earlier tapped six-year highs. Athletic shoemaker Yue Yuen Industrial Holdings Ltd raced up 3.2 percent to HK $24.55, a day after Nike Inc reported forecast-beating fourth-quarter earnings.
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