Hong Kong shares move up

China's stock indexes rose on Wednesday, led by financial shares after Beijing's fourth rate increase since October was seen benefiting lenders by widening its margins. All 16 banking shares listed on the Shanghai and Shenzhen markets rose, led by Bank of Communications, which was among the most active issues on the Shanghai market, up 4.3 percent. Hua Xia Bank rose 4.3 percent.
-- Shanghai index breaches 3,000 resistance level
The Shanghai Composite Index breached the key 3,000 resistance level, closing up 1.1 percent to 3001.4, its highest level since March 9, extending a 1.3 percent rise last Friday. The markets were closed on Monday and Tuesday forr the Tomb Sweeping Festival. Following the strong banking shares, the shares of securities houses also outperformed, as the Industrial Securities jumped to its 10 percent daily limit and Haitong Securities rose 2.3 percent.
Hong Kong's benchmark Hang Seng Composite Index finished up 0.6 percent to 24,285.1 on Wednesday, extending a four-session winning sterak as it climbed to levels last seen in January, although trading remained rangebound. Some Chinese property, energy and financial counters underperformed the broader market in Hong Kong as investors took profit on overbought stocks, but analysts said the broader uptrend for the sectors remained intact.
CNOOC Ltd, technically overbought with a relative strength index (RSI) value of 75.9, lost 3.4 percent. China Overseas Land & Investment Ltd, overbought with an RSI value of 70.1, recovered from a 3.5 percent decline in the morning to close down 2.8 percent. Analysts expect trading to be range-bound this week, citing 24,800, the Hang Seng's January peak, as the next resistance point, with support seen at 23,400.
Some analysts said a low dollar and yen would encourage fund flows into Hong Kong, something they have noticed, with the Hong Kong dollar strengthening steadily since March 30. HSBC Holdings Plc, Bank of China Ltd and Chinese insurers, China Life Insurance Co Ltd and Ping An Insurance (Group) Co of China Ltd were among leading gainers in Hong Kong on Wednesday.