Stocks rise as manufacturing proliferates
Updated: 2010-11-02 07:10
(HK Edition)
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Hong Kong stocks rose, sending the Hang Seng Index (HSI) to its steepest gain in more than four months, as China's manufacturing expanded at the fastest pace in six months and as companies reported increased earnings.
The HSI rose 2.4 percent to 23,652.94 at the close. All but two stocks advanced on the 45-member gauge. The Hang Seng China Enterprises Index gained 2.6 percent to 13,508.17.
"It shows that resilience in China's growth seems to be continuing," said Yoji Takeda, head of the Asian equity management team at RBC Investment (Asia) Ltd. "The market is certainly welcoming the result. The underlying confidence in the economy seems strong."
Tencent Holdings jumped 4.2 percent to HK$185. Belle International Holdings Ltd advanced 3.9 percent to HK$14.54. Ping An Insurance Group Co climbed 3.9 percent to HK$86.70.
China-based companies gained as the nation's manufacturing expanded at the fastest pace in six months in October, adding to signs that the economy can bear more gains in the yuan and interest-rate increases to cool inflation.
The Purchasing Managers' Index rose to 54.7, China's logistics federation said in an emailed statement. The reading compared with 53.8 for the previous month.
Separately, China's economy may grow 9.5 percent in 2011, the China Securities Journal reported Monday, citing estimates by Fan Jianping, chief economist at the State Information Center.
China Construction Bank gained 3.4 percent to HK$7.64. The bank posted a 31 percent increase in third-quarter profit of 39.8 billion yuan from a year earlier. China Merchants Bank Co jumped 3.4 percent to HK$22.75 after saying its third-quarter profit rose 53 percent from a year earlier.
China Shenhua Energy surged 4.2 percent to HK$35.95 after posting an 11 percent increase in third-quarter profit.
Futures on the HSI rose 2.9 percent to 23,639.
Bloomberg
(HK Edition 11/02/2010 page3)