HONG KONG: Hong Kong shares jumped 0.84 percent Friday to their highest level in more than three months following strong bond sales in France and Spain as well as upbeat US jobs figures.
The benchmark Hang Seng Index added 167.42 points to 20,110.37 on turnover of HK$65.96 billion ($8.45 billion). The market last closed above 20,000 points in early November.
Paris and Madrid on Thursday raised funds at much lower rates on the bond markets in their first auctions since their ratings were cut last Friday by Standard & Poor's.
Spain saw the average rate on its 10-year bonds plunge to 5.403 percent from 6.975 percent in November, while France's fell to 1.07 percent from 2.32 percent in November.
Across the Atlantic, hopes that the US economic recovery is gaining traction were boosted by data showing weekly new claims for unemployment benefits fell to their lowest level since April 2008.
Financials in Hong Kong were also lifted by strong bank earnings on Wall Street.
"Local shares are boosted as economic data in the US continued to point to a recovery in the global economy," VisionGain Capital Fund Manager Wallace Lo said.
HSBC jumped 3.7 percent to HK$64.55 while Britain-based Standard Chartered ended 4.2 percent higher at HK$186.40. Sportwear retailer Li Ning surged 8.5 percent to HK$7.29.
Chinese shares closed up 1.00 percent after data showed manufacturing activity slowed for a third straight month in January but at a slower pace.
The Shanghai Composite Index, which covers both A and B shares, was up 23.05 points to 2,319.12 on turnover of 62.9 billion yuan ($10.0 billion).
The benchmark index closed at a six-week high and gained 3.32 percent on the week.
The preliminary purchasing managers' index (PMI), as measured by British bank HSBC, stood at 48.8 in January, from 48.7 in December.
A reading above 50 indicates expansion while a reading below 50 suggests a contraction.
Property developers were among the best performers. China Vanke rose 1.4 percent to 7.90 yuan, while Poly Real Estate jumped 2.5 percent to 10.94 yuan.
Insurers gained on low valuations. New China Life Insurance added 1.7 percent to 19.33 yuan and Ping An Insurance was up 1.5 percent to 39.10 yuan.
China's stock market will be closed next week for the Lunar New Year holiday with trading resuming on January 30.
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