Hong Kong stocks rose over 1 percent to a fresh 4-1/2 year closing high on Tuesday, with oil plays rallying amid persistently high oil prices and bank stocks rising after stronger-than-expected results from HSBC Holdings Plc. The benchmark Hang Seng index closed up 1.06 percent, or 158.2 points, breaching the psychologically-important 15,000 level to reach 15,137.08 - a level last seen in February 2001.
Turnover climbed to HK$27 billion ($3.5 billion), compared with HK$20 billion on Monday.
Traders said the index was likely to gain another 100-200 points this week on the back of fund inflows into the region.
Some market watchers said that a gradual strengthening of China's yuan currency, which closed at 8.1032 near a post-revaluation high, was not an immediate driver for the market, but that long-term strengthening of the yuan may improve investors' view of China plays.
They added that Hong Kong shares were overheated, with a reading of 92.7 on the relative strength index. Levels above 70 are considered overbought.
The Hang Seng Index has gained 9.2 percent since the end of May, compared to a 5.9 percent gain for Japan's benchmark Nikkei and a 15.3 percent gain for South Korea's KOSPI, which have been rising on a liquidity-driven rally.
Bank plays rose after index heavyweight HSBC Holdings Plc posted stronger-than-expected interim results after the market close on Monday. For a full story on the bank's earnings.
Shares in HSBC were the most actively traded on Tuesday, and rose 1.02 percent to HK$128.50, after hitting an intra-day high of HK$128.70 - their highest level since March.
Bank of East Asia Ltd, which posts its results on Wednesday, rose 1.05 percent to HK$24, while Bank of China (Hong Kong) Ltd rose 1.59 percent to HK$16 -a record high - on optimism that their first-half profit growth would mirror that of HSBC.
Oil plays such as PetroChina and CNOOC also rose after crude oil prices soared to hit fresh record highs above $62.
Oil major PetroChina gained 4.26 percent to HK$7.35 after hitting a record high of HK$7.45 after the company said late on Monday it had agreed to build a 10 billion yuan ($1.2 billion) liquefied natural gas (LNG) project in the northern province of Hebei.
Chinese offshore oil producer CNOOC Ltd rose 2.8 percent to HK$5.50. The stock has risen for three straight sessions despite uncertainty over the outcome over CNOOC's bid to buy Unocal Corp.
Chinese computer maker Lenovo Group Ltd was the biggest blue chip gainer, extending gains from the previous session by rising 5.56 percent to HK$2.85.
Traders said the gains were triggered by a UBS report which upgraded its rating on the firm to "buy" from "reduce", on hopes Lenovo can deliver cost savings in the next three to four quarters.
Comments
Comments are closed.