Connect to share and comment

Hong Kong shares up 2.13% by close

PlacardEnlarge
(Globalpost/GlobalPost)

Hong Kong shares closed up 2.13 percent Monday, buoyed by better-than-expected industrial data from China late last week that eased fears the world's second-largest economy is heading towards a slowdown.

The benchmark Hang Seng Index gained 463.72 points to 22,271,28, its highest close since early June, on turnover of HK$64.74 billion (US$8.35 billion).

On Friday, China reported industrial growth for July reached a five-month high. Industrial production, which measures output at factories, workshops and mines, rose 9.7 percent year-on-year, well above analyst expectations.

Gross domestic product (GDP) in China expanded 7.8 percent in 2012, its slowest annual pace in 13 years.

Growth slipped to 7.7 percent in the January-March period this year and slowed further to 7.5 percent in the second quarter, raising alarm bells over possible deeper weakness.

Steven Leung, head of institutional sales at brokers UOB Kay Hian, said long-term buyers returned to the market Monday.

Yanzhou Coal jumped 9.9 percent to HK$6.55 while Zijin Mining surged 10.7 percent to HK$1.86.

But sportswear stocks in Hong Kong tumbled, with Chinese sporting goods company Li Ning falling 6.1 percent to HK$4.91 after a disappointing first-half report, and rival Anta Sports closing down 3.3 percent at HK$9.83.

Chinese shares closed up more than two percent due to renewed optimism towards the domestic economy, dealers said.

The benchmark Shanghai Composite Index jumped 2.39 percent, or 49.04 points, to 2,101.28 on turnover of 116.5 billion yuan ($19.0 billion).

"Market expectations changed after economic data showed improvement," Zheshang Securities analyst Zhang Yanbing told AFP.

"The market will definitely continue the upward trend if monthly economic figures continue to improve."

Resource and financial shares led the gains.

Shanxi Coal International Energy surged by its 10 percent daily limit to 6.44 yuan while Yanzhou Coal Mining also jumped 10 percent to 11.30 yuan.

Baotou Steel Rare-Earth advanced 5.01 percent to 29.57 yuan and Jiangxi Copper gained 4.49 percent to 17.93 yuan.

Southwest Securities rose 7.56 percent to 9.53 yuan, Industrial Bank jumped 6.24 percent to 9.88 yuan and New China Life Insurance gained 4.08 percent to 23.19 yuan.

-- Dow Jones Newswires contributed to this report --

bur-jta/jms

http://www.globalpost.com/dispatch/news/afp/130812/hong-kong-shares-213-close-0