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Hong Kong stocks close 0.39% higher

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(Globalpost/GlobalPost)

Hong Kong shares rose 0.39 percent on Friday at the end of a positive week, hitting their highest level in around two and a half years.

The Hang Seng Index added 92.20 points to 23,881.29 -- its best finish since April 2011 -- on turnover of HK$48.12 billion ($6.21 billion).

The gains highlight that investors are "gaining some interest in the China recovery story", Alex Wong, head of asset management at Ample Capital, told Dow Jones Newswires.

Data over the weekend will bring fresh insight into the health of the world's second biggest economy when the country releases November manufacturing data.

Aluminum Corp of China gained 0.69 percent to HK$2.90, Bank of China climbed 0.81 percent to HK$3.75 and China Mobile added 1.15 percent to HK$83.50, while Cathay Pacific Airways lost 2.02 percent to HK$16.46.

Chinese shares ended flat. The benchmark Shanghai Composite Index edged up 1.13 points to 2,220.50 on turnover of 97.8 billion yuan ($16.0 billion). The index rose 1.10 percent for the week.

"In the short term, we're looking at consolidation as we approach year-end," said Capital Securities analyst Zhang Yuheng.

"The index might rise a few days but won't have much momentum and will likely alternate between gains and losses," he said.

Defence industry stocks rose on heightened tensions over an air defence identification zone that China announced last weekend.

Shaanxi Aerospace Power Hi-Tech soared by its 10 percent daily limit to 17.33 yuan while Jiangxi Hongdu Aviation Industry also rose 10 percent to 22.57 yuan.

Resources shares were lower on profit-taking. Baotou Steel Rare-Earth dropped 2.79 percent to 26.51 yuan and Yanzhou Coal Mining slid 1.44 percent to 10.27 yuan.

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http://www.globalpost.com/dispatch/news/afp/131129/hong-kong-stocks-close-039-higher