Leading Hong Kong stocks surged on Monday with blue chips and China plays rising across the board after a strong US jobs report and on signs of easing global oil prices.
The market was also spurred by news that China's second biggest life insurer, Ping An Insurance, plans to raise a higher than expected HK $16.49 billion (US $2.11 billion) in what could be Hong Kong's biggest IPO this year.
"Some of the negative factors that have been influencing the market have been receding," said Joseph Lau, a director at Tai Fook Asset Management.
The blue chip Hang Seng Index finished up 2.53 percent, or 304.21 points, at 12,326.85. Volume was in line with recent averages with HK $13.72 billion (US $1.75 billion) changing hands.
The closely watched US jobs report showed employers added 248,000 jobs in May, beating expectations for a 216,000 rise.
Markets were also soothed by declining world oil prices, which held below the psychologically important US $40 a barrel in Asian trade on Monday.
However, oil dealers warned the downside potential for prices would be limited by fears of security risks in the oil-rich Middle East and worries US gasoline stocks would be drained as the summer driving season picks up despite the latest supply increases.
Laggard blue chips such as China mobile firm China Unicom Ltd, sourcing firm Li & Fung Ltd and computer maker Lenovo Group all got a shot in the arm.
Traders said lagging telecom stocks such as China Unicom were also boosted by strong US tech stocks after Intel, the world's largest computer chipmaker, suggested quarterly revenue may be better than previously expected.
China Unicom was the top blue chip performer, gaining 6.31 percent to HK $5.90. The shares have shed over 40 percent in the past three months.
Exporters also got a boost from the latest signs of a robust US economy. Sourcing firm Li & Fung rose 4.15 percent to HK $11.30, after losing nearly 16 percent in the past month, while sneaker maker Yue Yuen Industrial (Holdings) Ltd gained 5.75 percent to HK $19.30.
China computer maker Lenovo Group, the worst performing stock in the Hang Seng so far this year, also gained ground rising 3.49 percent to HK $2.22.
The Hang Seng Properties sub index rose 4.21 percent to 14,837.27. Top property performers included Henderson Land Investment Co Ltd, which jumped 5.35 percent to HK $33.50, and property heavy conglomerate Swire Pacific, which rose 4.48 percent to HK $52.50.
A slew of China listings slated for this month also boosted sentiment for sectors related to upcoming offerings.
With insurer Ping An due to list this month, China Life Insurance Co Ltd, which listed in the largest global IPO of the year in 2003, rose 4.52 percent to HK $4.62.
Shipping stocks rose in tandem with the planned listing of China Shipping Container Lines Co Ltd, which begins trade on Hong Kong's main board next week. China Shipping Development gained 4.97 percent to HK $4.22.
China enterprise stocks, known as H-shares, were also sharply higher with heavily-weighted oil stocks jumping at the open along with commodity plays. The H-share index gained 5.28 percent to 4,303.65.
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