Hong Kong Stocks Rise as Tourist Rush Boosts Retailers, Casinos
Hong Kong stocks rose, with the benchmark index headed for its biggest gain in two weeks, as the city’s retailers and Macau casino operators climbed on increased tourist arrivals during a three-day holiday. Chinese developers rebounded after slumping last week.
Chow Sang Sang Holdings International Ltd., a jewelry retailer, rose 2.6 percent after a report tourism during the Lunar New Year holiday jumped 33 percent from a year earlier. Wynn Macau Ltd., the Hong Kong-listed casino unit of Wynn Resorts Ltd., gained 2.2 percent as Chinese arrivals in Macau also rose. China Resources Land Ltd., a state-owned developer, advanced 3.8 percent after last week slumping 7.6 percent on concern more property curbs will be introduced.
The Hang Seng Index rose 0.9 percent to 23,427.41 as of 10:48 a.m. in Hong Kong, with about five stocks advancing for every four that fell. The Hang Seng China Enterprises Index of mainland companies climbed 1.4 percent to 11,816.20. China’s markets will remain closed for the rest of the week.
“If the A-shares open higher after the holiday next Monday, the Hong Kong stock market may have another upside next week,” said Patrick Yiu, associate director at Cash Asset Management Ltd. in Hong Kong. Mainland developers are being bought after they were oversold last week, and as investors anticipate property transaction volumes to rise, Yiu said.
The Hang Seng Index surged 22 percent from the end of August through January, as China’s economic reports signaled a recovery and as central banks added stimulus to boost growth. The gauge traded at 11.3 times average estimated earnings on Feb. 8, compared with 13.7 for the Standard & Poor’s 500 Index and 12.4 for the Stoxx Europe 600 Index, according to data compiled by Bloomberg.
Futures on the Standard & Poor’s 500 Index were little changed today. The gauge gained 0.1 percent yesterday to the highest level since October 2007 as investors weighed economic reports and President Barack Obama’s State of the Union address.
Futures on the Hang Seng Index climbed 0.7 percent to 23,414. The HSI Volatility Index rose 1.1 percent to 14.40, indicating traders expect a swing of 4.1 percent for the equity benchmark in the next 30 days.
To contact the reporter on this story: Kana Nishizawa in Hong Kong at email@example.com
To contact the editor responsible for this story: John McCluskey at j.mccluskey@bloomberg.Net