Hong Kong stocks rose, paring the benchmark index’s second consecutive week of losses, as commodity prices gained, and companies announced increases in their profits.
PetroChina Co., the nation’s largest oil company, climbed 3.8 percent after the parent company increased its stake in the listed unit. Jiangxi Copper Co., China’s No. 1 producer of the metal, rose 2.6 percent. Lenovo Group Ltd. (992), China’s biggest maker of personal computers, gained 5.3 percent on higher profit. Luxury retailers rose after visitors to Hong Kong increased. The Hang Seng Index increased 1 percent to 23,118.07 at the close, with almost eight stocks climbing for each that fell on the 45-member gauge. The index fell 0.4 percent for the week, its second-straight week of decline. The Hang Seng China Enterprises Index of Chinese companies’ H shares climbed 1.6 percent to 12,960.82.
“The Hong Kong market is going into a rebound as the stocks fell too much recently,” said Linus Yip, chief strategist at First Shanghai Securities Ltd. in Hong Kong. “The general sentiment remains cautious on the slowdown of global economic growth.”
PetroChina advanced 3.8 percent to HK$10.94, the biggest contributor to the Hang Seng Index’s advance, after saying parent China National Petroleum Corp. bought 31.1 million yuan- denominated shares, equivalent to a 0.017 percent stake, in the company on May 25.
Cnooc Ltd. (883), China’s biggest offshore oil producer, increased 2 percent to HK$19.06, and Jiangxi Copper rose 2.6 percent to HK$26.10.
Oil rose in New York on speculation that the global economic recovery will sustain demand for crude. Crude for July delivery increased as much as 67 cents to $100.90 a barrel in electronic trading on the New York Mercantile Exchange, and was at $100.79 at 2:48 p.m. Singapore time.
Three-month delivery copper on the London Metal Exchange increased as much as 2 percent to $9,195.50 a metric ton, the highest level since May 4, and traded at $9,175 at 3:50 p.m. Singapore time.
Copper, gold, iron ore and coal will lead a rally in commodities over the next two to three years as demand for raw materials from China and India outpaces supplies, according to Standard Chartered Plc.
China Coal Energy Co., the nation’s No. 2 producer of the fuel, advanced 2.1 percent to HK$10.14. Yanzhou Coal Mining Co., China’s fourth-largest producer, rose 2.5 percent to HK$30.55.
China National Coal Association said stockpiles fell 6.9 percent at the end of April from the beginning of the year.
Lenovo increased 5.3 percent to HK$4.56 after saying fourth-quarter profit tripled to $42 million, exceeding the $38.4 million average estimate from six analysts estimates compiled by Bloomberg.
Gome Electrical Appliances Holding Ltd., China’s second- largest electronics retailer, jumped 8.2 percent to HK$3.04 after saying first-quarter profit surged 66 percent from a year earlier to 552 million yuan ($85 million).
Hong Kong-based jewelry retailers Luk Fook Holdings (International) Ltd. jumped 3.9 percent to HK$32.20, and Chow Sang Sang Holdings International Ltd. (116) gained 4 percent to HK$23.35. Emperor Watch & Jewellery Ltd. (887) surged 9.1 percent to HK$1.32.
Exports of Swiss watches to Hong Kong, already the largest market for the timepieces, jumped 54 percent in value terms in April from a year before, according to figures from the Federation of the Swiss Watch Industry released yesterday.
Visitors to the city last month rose 20 percent from a year earlier, according to data from the Hong Kong Tourism Board. Retail sales rose 24.3 percent by value during April compared with a year earlier, according to the median estimate of six economists surveyed by Bloomberg. The data is due out on May 31.
“More visitors are coming to Hong Kong, buying watches and jewelry,” said First Shanghai’s Yip. “The sector’s fundamentals are good. The general market isn’t too strong at the moment, and money is going to stocks with good fundamentals.”
The Hang Seng Index (HSI) has fallen 0.6 percent this year through yesterday amid concern Japan’s nuclear and Europe’s debt crisis, and China’s tightening measures will slow global economic growth. Shares in the gauge traded at an average 12.2 times forecast earnings yesterday, compared with 14.4 times at the end of last year, according to data compiled by Bloomberg.
The gauge earlier fell as much as 0.2 percent after a report showed U.S. economy grew at a slower rate than estimated. Li & Fung Ltd., the biggest supplier to retailers including Wal- Mart Stores Inc., slid 2.6 percent to HK$16.20. Yue Yuen Industrial Holdings Ltd. (551), which makes shoes for Nike Inc., slid 0.2 percent to HK$26.75.
Futures on the Standard & Poor’s 500 Index rose 0.2 percent today. In New York, the index advanced 0.4 percent to yesterday as higher-than-estimated corporate profits at companies including Tiffany & Co. overshadowed data showing the economy grew at a slower rate than forecast and jobless claims rose.
Economic growth slowed to a 1.8 percent annual rate in the first quarter, reflecting a smaller gain in consumer spending than previously calculated. The median forecast of economists surveyed by Bloomberg News was for 2.2 percent growth.
Unemployment claims increased by 10,000 to 424,000 last week, Labor Department figures showed. The median estimate of economists was for a drop to 404,000.
Great Wall Motor Co., China’s largest maker of pickup trucks, tumbled 5.2 percent to HK$11.40 after agreeing to buy the outstanding 47 percent stake in Baoding Great Wall Huabei Automobile Co. from the liquidators of its bankrupt partner for 173.2 million yuan.
Futures on the Hang Seng Index gained 1.2 percent to 23,139. The HSI Volatility Index, the benchmark gauge for Hong Kong stock options, fell 0.8 percent to 17.73, indicating options traders expect a swing of 5.1 percent in the Hang Seng Index in the next 30 days.
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