Stocks climb as developers advance on slower PMI
Updated: 2011-03-02 07:47
(HK Edition)
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Hong Kong stocks advanced as developers gained after an economic report signaled the central government's moves to tame inflation may be working. HSBC Holdings Plc and Aluminum Corp of China Ltd fell after their profits missed analyst estimates.
China Overseas Land & Investment Ltd, controlled by the nation's construction ministry, gained 1.9 percent on speculation inflation eased after a report showed manufacturing activity expanded at the slowest pace in six months, reducing the need for further interest-rate increases. Sun Hung Kai Properties Ltd and New World Development Co both rose after their profits increased. HSBC, Europe's biggest bank by market value, sank 5.1 percent and Aluminum Corp slid 4 percent.
The Hang Seng Index (HSI) rose 0.3 percent to 23396.42 at the close, after falling 0.4 percent. All but six stocks advanced in the 45-member gauge. The Hang Seng China Enterprises Index advanced 0.9 percent to 12620.31.
The Purchasing Managers' Index, a measure of manufacturing activity, fell to 52.2 from 52.9 in January, the China Federation of Logistics and Purchasing said on its website Tuesday, the third monthly decline. A reading above 50 shows manufacturing is expanding.
Tuesday's manufacturing report "should be positive to market sentiment", Bank of America-Merrill Lynch economists led by Ting Lu wrote in e-mailed comments Tuesday.
Futures on the HSI gained 0.3 percent to 23380. The HSI Volatility Index, the benchmark gauge for Hong Kong stock options, slid 7.4 percent to 17.35.
Bloomberg
(HK Edition 03/02/2011 page3)