HONG KONG: Hong Kong stocks rose 0.52 percent Wednesday after the Dow ended at a near four-year high in New York while traders were also looking to a European Central Bank lending spree later in the day.
The benchmark Hang Seng Index added 111.35 points to 21,680.08 on turnover of HK$70.88 billion ($9.10 billion).
The bourse was given a healthy lead by the Dow Jones, which continued its recent rally to end at 13,005.12, its best finish since May 19, 2008, boosted by upbeat consumer data.
Eyes are also on the eurozone, where the European Central Bank is due to hold its second refinancing operation for cash-strapped banks that will provide them with as much capital as they need at rock-bottom interest rates for three years.
In Hong Kong blue-chip carrier Cathay Pacific rose 3.5 percent to HK$15.40, adding to a 5.7 percent rise Tuesday, on hopes that a fall of about two percent in oil prices on Tuesday will lessen its fuel cost burden.
Chinese flag carrier Air China also rose 1.9 percent to HK$5.86, while Shanghai-based China Eastern advanced 1.7 percent to HK$2.99.
Chinese shares closed down nearly one percent, ending a seven-session rally. The Shanghai Composite Index, which covers A and B shares, lost 0.95 percent, or 23.37 points, to 2,428.49 on turnover of 91.9 billion yuan ($14.6 billion).
The property sector led the losses after Shanghai reversed an earlier decision to allow non-residents who have lived in the city for more than three years to buy a second home.
"The sudden reversal really damps people's hopes for property policy relaxing in the foreseeable future and the uncertainties prompted investors to cash in," said Central China Securities analyst Zhang Gang.
"Shanghai's policy reversal had a definite impact on the market, but profit-taking also occurred after the index gained the past few sessions," Zhang Qi, an analyst at Haitong Securities, told AFP.
Developer China Fortune Land Development slumped 8.51 percent to 22.04 yuan and China Enterprise Co. dropped 4.24 percent to 5.20 yuan.
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