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Hong Kong stocks end up 0.42%

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(Globalpost/GlobalPost)

Hong Kong stocks ended 0.42 percent higher on Monday following a record-breaking close on Wall Street at the end of last week.

The benchmark Hang Seng Index rose 98.05 points to 23,438.15 on turnover of HK$60.28 billion ($7.78 billion).

The gains were in line with a regional advance following a positive lead from New York Friday, where the S&P 500 surged 0.65 percent to another record, while the Dow put on 0.18 percent.

The Nasdaq jumped 1.32 percent to highs not seen since September 2000 thanks to a surge in Google shares, which topped $1,000 after the Internet giant posted a 36 percent rise in third-quarter net profit.

Hong Kong dealers bought up technology-related stocks after the Google news.

Chinese Internet titan Tencent Holdings led the gains, jumping 4.2 percent to HK$447.80.

"Although search engine or video advertising revenue are not the key income streams of Tencent, we believe that investors are excited by the Google effect, especially as Tencent is the only sizeable Internet stock listed in Hong Kong," Mizuho analyst Marvin Lo said.

However, conglomerate Hutchsion Whampoa fell 1.1 percent to HK$95.75 after it said Friday it had scrapped plans to sell its ParknShop grocery chain.

Chinese shares closed up 1.62 percent. The benchmark Shanghai Composite Index jumped 35.46 points to 2,229.24 on turnover of 123.9 billion yuan ($20.3 billion).

Sentiment is up after Beijing on Friday released data showing the economy expanded 7.8 percent year-on-year in July-September, snapping two quarters of slowing growth.

"The market may remain on an upward trend... with a stabilisation of economic growth in coming months," Southwest Securities analyst Zhang Gang told Dow Jones Newswires, adding the economic rebound had helped third-quarter earnings.

Environmental protection firms and software developers were among the biggest gainers after state media said the government would support "emerging industries".

Pollution control equipment manufacturer Fujian Longking advanced 7.37 percent to 37.90 yuan, while wastewater treatment firm Beijing Capital gained 3.43 percent to 7.84 yuan.

Shanghai Baosight Software surged by its 10 percent daily limit to 33.18 yuan and China National Software & Service also soared 10 percent to 48.43 yuan.

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http://www.globalpost.com/dispatch/news/afp/131021/hong-kong-stocks-end-042-0