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Bloomberg, (4/7) -- Hong Kong stocks
climbed, with the benchmark equity index rebounding from two days of
declines, after U.S. labor data beat estimates and China’s government
said fiscal funds should be used to stabilize economic growth.
The Hang Seng Index increased 1.5 percent to 20,456.10 as of 1:15 p.m. in Hong Kong, with just four of the gauge’s 50 companies falling. Trading volume on the measure was 28 percent lower than its 30-day intraday average, according to data compiled by Bloomberg. The Hang Seng China Enterprises Index of mainland shares climbed 1.7 percent to 9,047.48.
“Investors are regaining confidence that the U.S. economy may not be so bad,” said Jackson Wong, vice president of Hong Kong-based brokerage Tanrich Securities Co. “Before, everyone was betting on China to boost growth. Now the focus is shifting back to the U.S.” The Hong Kong market has been oversold and investors are seeking to recoup losses, he said.
The Hang Seng China Enterprises Index, also known as the H-share index, capped its worst first half since 2008 last week. The gauge closed 27 percent below its Feb. 1 high yesterday, with the measure trading at 1.07 times the value of net assets, a level not seen since the 2008 global financial crisis.
Just two of 11 industries on the Hang Seng Composite Index have advanced this year. Materials and energy companies led declines on signs China’s economic growth is slowing. Reports this week showed the country’s industrial expansion in manufacturing and services is losing pace as the government seeks to redirect the economy away from exports.
Chinese Premier Li Keqiang said fiscal funds should be used to redevelop shantytowns and improve basic infrastructure to stabilize the world’s second-largest economy. Money should be allocated to transform the structure of the economy to focus more on domestic consumption, the State Council said in a statement on its website yesterday.
China may post second-half economic growth of 7.6%, according to a State Information Center report published in China Securities Journal. Goldman Sachs Group Inc., China International Capital Corp., Barclays Plc and HSBC Holdings Plc last month pared their China growth projections for this year to 7.4 percent, below the government’s 7.5 percent goal.
Energy companies led gains on the Hang Seng Composite Index. West Texas Intermediate crude traded near the highest price in 14 months as U.S. stockpiles shrank the most this year and the ouster of Egypt’s president fanned concern unrest will disrupt Middle East oil supply.
Futures on the S&P 500 gained 0.1 percent as the country celebrates the July 4 holiday. The U.S. benchmark yesterday rose to the highest level in two weeks on better-than-estimated labor data as investors watched political developments in Portugal, where the splintering of the coalition government caused bond yields to surge, and in Egypt.
U.S. Jobless claims decreased to 343,000 in the week ended June 29 from a revised 348,000 in the prior period that was higher than initially reported, the Labor Department said today in Washington. An official report tomorrow will probably show the nation added 165,000 jobs in June.
The Hang Seng Index increased 1.5 percent to 20,456.10 as of 1:15 p.m. in Hong Kong, with just four of the gauge’s 50 companies falling. Trading volume on the measure was 28 percent lower than its 30-day intraday average, according to data compiled by Bloomberg. The Hang Seng China Enterprises Index of mainland shares climbed 1.7 percent to 9,047.48.
“Investors are regaining confidence that the U.S. economy may not be so bad,” said Jackson Wong, vice president of Hong Kong-based brokerage Tanrich Securities Co. “Before, everyone was betting on China to boost growth. Now the focus is shifting back to the U.S.” The Hong Kong market has been oversold and investors are seeking to recoup losses, he said.
The Hang Seng China Enterprises Index, also known as the H-share index, capped its worst first half since 2008 last week. The gauge closed 27 percent below its Feb. 1 high yesterday, with the measure trading at 1.07 times the value of net assets, a level not seen since the 2008 global financial crisis.
Just two of 11 industries on the Hang Seng Composite Index have advanced this year. Materials and energy companies led declines on signs China’s economic growth is slowing. Reports this week showed the country’s industrial expansion in manufacturing and services is losing pace as the government seeks to redirect the economy away from exports.
Chinese Premier Li Keqiang said fiscal funds should be used to redevelop shantytowns and improve basic infrastructure to stabilize the world’s second-largest economy. Money should be allocated to transform the structure of the economy to focus more on domestic consumption, the State Council said in a statement on its website yesterday.
China may post second-half economic growth of 7.6%, according to a State Information Center report published in China Securities Journal. Goldman Sachs Group Inc., China International Capital Corp., Barclays Plc and HSBC Holdings Plc last month pared their China growth projections for this year to 7.4 percent, below the government’s 7.5 percent goal.
Energy companies led gains on the Hang Seng Composite Index. West Texas Intermediate crude traded near the highest price in 14 months as U.S. stockpiles shrank the most this year and the ouster of Egypt’s president fanned concern unrest will disrupt Middle East oil supply.
Futures on the S&P 500 gained 0.1 percent as the country celebrates the July 4 holiday. The U.S. benchmark yesterday rose to the highest level in two weeks on better-than-estimated labor data as investors watched political developments in Portugal, where the splintering of the coalition government caused bond yields to surge, and in Egypt.
U.S. Jobless claims decreased to 343,000 in the week ended June 29 from a revised 348,000 in the prior period that was higher than initially reported, the Labor Department said today in Washington. An official report tomorrow will probably show the nation added 165,000 jobs in June.
Written by: Kontak Perkasa Futures
PT.Kontak Perkasa Futures, Updated at: 1:04 PM
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