Chinese stocks traded in New York completed their biggest weekly gain this year, led by commodity producers, on prospects stimulus measures by policy makers in the U.S. and Europe will boost the outlook for exporters.
The Bloomberg China-US Equity Index (CH55BN) of the most-traded Chinese shares in the U.S. jumped 2.1 percent to 93.91 yesterday in New York to extend its weekly advance to 5.7 percent, the most since the five days ended Dec. 2. Aluminum Corp. of China Ltd., the nation’s largest maker of the metal, rallied the most since May, and oil explorer Cnooc Ltd. (883) climbed to a one-month high as commodities posted the longest run of weekly gains since 2010.
Oil futures settled at the highest level in four months yesterday in New York and commodities increased following Federal Reserve Chairman Ben S. Bernanke’s Sept. 13 announcement that the U.S. central bank will purchase assets to boost growth. The Fed’s actions follow the European Central Bank which said Sept. 6 that it also plans a bond-purchase program.
“The actions by central banks in the U.S. and the E.U. are designed to push investors into risk assets, and emerging markets will be a beneficiary of that,” Deborah Velez Medenica, the head of emerging markets at Fred Alger Management Inc., which manages about $17 billion, said by phone from New York yesterday. “Investors are putting their money into laggards year-to-date, and commodity producers may continue to see support for prices that have fallen.”
China ETF Advances
The iShares FTSE China 25 Index Fund, the biggest Chinese exchange-traded fund in the U.S., added 1.8 percent to a one- month high of $35.19, extending gains this week to 4.5 percent. The Standard & Poor’s 500 Index (SPX) climbed 0.4 percent to 1,467.77 for a weekly increase of 1.9 percent.
Aluminum for three-month delivery rose for the 11th straight session, gaining 4.7 percent yesterday to $2,200 a ton on the London Metal Exchange, the longest rally in at least 25 years.
American depositary receipts of Aluminum Corp., known as Chalco, jumped 5.9 percent to $11.06, the highest level since May 8. The ADRs advanced 12 percent for the week, the largest five-day gain since October. The ADRs traded 1.8 percent above the company’s Hong Kong shares.
Crude oil for October delivery rose 0.7 percent to $99 a barrel on the New York Mercantile Exchange, the highest settlement since May 3. The prices surged as much as 2.1 percent to touch $100.42 yesterday.
ADRs of Cnooc, China’s biggest offshore oil and gas explorer, extended gains for a fourth day, increasing 3.7 percent to $204.07, the highest level since Aug. 10. PetroChina Co. (PTR), the nation’s largest oil producer, climbed 2.6 percent to $129.35 in New York, the steepest increase in two months.
Yanzhou Coal Mining Co. (YZC), China’s fourth-largest producer of the fuel, surged 6 percent to a one-month high of $15.99.
SouFun Holdings Ltd. (SFUN), the biggest real estate information website in China, jumped 9.3 percent to $14.73, the largest gain since May.
Arnout Van Rijn, chief investment officer for Asia at Robeco Groep NV, said he is overweight in property stocks in China and Hong Kong this year in an interview yesterday.
Baidu Inc. (BIDU), owner of China’s most-popular online search engine, advanced 5.3 percent to $115.62, the steepest rally since July.
The Shanghai Composite Index advanced 0.6 percent to 2123.85 yesterday, trimming its weekly loss to 0.2 percent. The Hang Seng China Enterprises Index (HSCEI) of Chinese companies surged 3.7 percent to 9,829.43 yesterday, ending the week up 4.3 percent, the biggest five-day rally since January.
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