Hong Kong stocks rose, with the city’s benchmark index heading for its first advance in three days, amid signs the global economy is improving and after Standard & Poor’s said Chinese home sales will climb this year.
Guangzhou R&F Properties Co. gained 1.3 percent, pacing gains among Chinese developers. Sa Sa International Holdings Ltd. jumped 3.7 percent after Hong Kong’s biggest cosmetics retail chain said same-store sales increased 20 percent during the week of Lunar New Year. Brilliance China Automotive Holdings Ltd. and Dongfeng Motor Group Co. each rose more than 1 percent after the Chinese automakers were rated outperform at Sanford C. Bernstein Co..
The Hang Seng Index gained 0.3 percent to 23,217.79 as of 10:22 a.m. in Hong Kong, with almost three shares rising for each that fell. The gauge is heading for a 2.2 percent drop this month, the second-worst performer among the world’s developed equity markets, according to data compiled by Bloomberg. The measure had advanced the past five months, the longest such streak since July 2009, amid signs of economic recovery in China and the U.S.
“The fundamentals for the Hong Kong market are still pretty good,” said Yoji Takeda, who oversees about $1.2 billion as Hong Kong-based head of Asian equities at RBC Investment Management (Asia) Ltd. “Investors are waiting for policies from the new Chinese government and that shouldn’t disappoint. I don’t see that much risks. Europe looks more stable.”
The Hang Seng China Enterprises Index of mainland companies increased 0.5 percent to 11,579.65.
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