Hang Seng Index Hong Kong stocks rose for a second day, as improving economic reports and speculation Europe's crisis of debt include increased confidence in a global recovery.
Yue Yuen Industrial (Holdings) Ltd., the world's largest supplier of sports shoes and casual brand, rose by 1.1 percent. Techtronic Industries Co., maker of Hoover vacuum cleaners and Ryobi power tools, advanced 1.4 percent. CNOOC Ltd., the largest producer of oil in the sea of China, rose 3.2 percent after prices surged. Huaneng Power International Inc., China's No. 2 electricity producer, rose 6.8 percent after China ordered the freezing of prices for thermal coal.
"Market sentiment has changed from bearish to bullish, due to positive economic data," said Francis Lun, general manager of Fulbright Securities Ltd. in Hong Kong. "People do not care about the recession now. The market sentiment is likely to continue for the rest of the year. "
The Hang Seng index rose 0.9 percent to 23,448.78 at the close, its highest close since Nov. 22. The Hang Seng China Enterprise Index called H shares of Chinese companies rose 1.1 percent, at 13,087.40.
Yue Yuen, the shoemaker, which receives nearly half of U.S. sales and Europe, rose 1.1 percent, to 28.75 Hong Kong dollars. Techtronic Industries rose 1.4 percent to $ 8.61 in Hong Kong. Cosco Pacific Ltd., which operates container facilities at the port of Piraeus in Greece, advanced 4.9 percent to 12.94 Hong Kong dollars, the biggest gain in the Hang Seng index.
Manufacturing, Jobs
In the U.S., an ADP Employer Reporting Services showed that employers added 93,000 workers in November, more than 70,000 average forecast of economists surveyed by us, the Institute for Supply Management said its factory index, a gauge of manufacturing held close to a maximum of five months.
The Federal Reserve said the economy was strong in most U.S. recruitment of the improvement, expansion of manufacturing and retailers anticipated a holiday shopping season stronger.
The European Central Bank President Jean-Claude Trichet said policy makers must have the authority to combat "challenging" market conditions in Europe, and that investors are underestimating the determination of political leaders "to end the crisis in the region of the debt.
European manufacturing industries expanded at its fastest pace in four months in November, led by Germany, the largest economy in the area, London-based Markit Economics, said yesterday.
Oil rises
Oil producers and metals rose as economic reports raised optimism demand for commodities will increase. CNOOC rose 3.2 percent to HK $ 17.54, and PetroChina Co., the country's largest oil company, increased 2.4 percent to 9.97 Hong Kong dollars. China Petroleum & Chemical Corp. advanced 1.5 percent to HK $ 7.39.
Crude for January delivery rose 3.1 percent to $ 86.75 a barrel in New York yesterday, the highest closing price since Nov. 11, while the London Metal Exchange Index of six prices industrial metals like copper and aluminum rose 2.6 percent.
Jiangxi Copper Co., China's No. 1 producer of the metal, rose 3.7 percent to $ 24.05 in Hong Kong, while Zhaojin Mining Industry Co., a miner based in the Shandong Province of China , rose 4.4 percent to $ 30.75 in Hong Kong. Aluminum Corp. of China Ltd., the No. 1 producer of the metal, gained 1.4 percent to HK $ 7.11
A report yesterday showed manufacturing in China grew at its fastest pace in seven months in November, indicating that the economy can withstand higher interest rates as price pressures increase.
Energy prices
The Hang Seng index gained 6.3 percent this year through yesterday as the economic reports and earnings of the company reduced the concern of monetary tightening measures in China and Europe debt will slow global growth. Participation in the arms trade by an average of 14.8 times estimated earnings, compared with about 17.2 times in the beginning of the year.
Chinese power producers rose after the state news agency Xinhua said the government ordered a price freeze in 2011 contracts for coal used in power stations. Huaneng Power International rose 6.8 percent to HK $ 4.42, while Datang International Power Generation Co., the largest electricity producer in China, rose 6.8 percent to HK $ 2.99. China Resources Power Holdings Co., the producer of Hong Kong, mainland China electricity from China in the list, rose 4.3 percent to $ 14.42 in Hong Kong.
thermal coal prices in long-term contracts should be unchanged from 2010 levels, Xinhua reported yesterday, citing Cao Changqing, head of prices on the National Development and Reform. "Any form of price increase is not allowed," Cao was quoted as saying.
Three stocks rose for each that fell on the 45-member Hang Seng Index. Index futures gained 0.7 percent to 23,415.
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