Connect to share and comment
Hong Kong stocks rose 1.22 percent Monday after suffering heavy selling pressure last week, with investors gearing up for a closely-watched US Federal Reserve policy meeting this week.
The benchmark Hang Seng Index added 256.76 points to 21,225.9 on turnover of HK$56.27 billion (US$7.25 billion).
Ongoing concerns that the Federal Reserve could wind down its vast stimulus scheme and the resultant impact that could have on Hong Kong home prices have sent property shares tumbling over the past four months.
But during the last two trading sessions shares have rebounded in the beaten-down property sector, gaining nearly five percent since Friday.
Shares of Henderson Land and Sino Land rallied 3.6 percent and 4 percent respectively in Monday's trade.
Cheung Kong Infrastructure Holdings rose 3.6 percent after the company said it will buy Dutch waste processing firm AVR Afvalverwerking B.V. (AVR) for $1.25 billion, as part of an overseas expansion drive.
A weak batch of economic data from the US has provided hope the Fed will put off announcing any winding down of its $85 billion-a-month QE bond buying programme at the end of its two-day policy meeting starting Tuesday.
"Unless the Fed has a very drastic exit plan, I think the [Hong Kong] market will have a chance to fare a little bit better toward the end of the month," Ben Kwong, chief operating officer for KGI Asia, told Dow Jones Newswire.
Chinese stocks closed down 0.27 percent as concerns over the health of the domestic economy persisted, dealers said.
The benchmark Shanghai Composite Index slipped 5.82 points to 2,156.22 on turnover of 68.4 billion yuan ($11.2 billion).
"Investors lack confidence in the long-term growth of the domestic economy and corporate earnings," Industrial Securities analyst Jiang Shiqing told AFP.
Coal makers led the declines on worries a new package of government policies to reduce air pollution would hurt demand.
Wintime Energy slumped by its 10 percent daily limit to 7.70 yuan while Shanxi Coking lost 4.08 percent to 8.00 yuan.
Government moves, announced Friday, also targeted highly-polluting and energy consuming industries, which sent cement stocks lower.
Shaanxi Qinling Cement dropped 2.20 percent to 4.90 yuan while Anhui Conch Cement fell 1.80 percent to 14.20 yuan.
New China Life Insurance jumped 5.08 percent to 22.76 yuan and China Everbright Bank gained 2.05 percent to 2.99 yuan after reports that state-run investment firm Central Huijin raised its stake in the two firms last week.