Hong Kong Stocks Advance From Four-Month Low

Hong Kong stocks rose after a global equities rout sparked by Cyrpus saw the city’s benchmark index close yesterday at the lowest level since Dec. 4.

Esprit Holdings Ltd. (330), a clothier that counts Europe as its biggest market, climbed 3 percent, leading gains as concern eased that a tax on bank deposits in Cyprus will spark broader financial panic. Jiangxi Copper Co., China’s biggest producer of the metal, added 2 percent as copper futures gained. Samsonite International SA, a luggage maker, rose 2.4 percent after reporting full-year profit increased.

The Hang Seng Index (HSI) added 0.5 percent to 22,193.73 as of 10:17 a.m. in Hong Kong, with more than three shares rising for each that fell on the 50-member gauge. The measure lost 2 percent yesterday, making it the world’s worst-performing developed market, after Cyprus proposed an unprecedented levy on bank savings to pay for a European bailout.

“Investors are not overly concerned about the potential for political contagion from the imposition of a deposit tax in Cyprus,” said Ric Spooner, chief market analyst at CMC Market, a provider of trading services in Sydney. “Investors and bank depositors appear to accept assurances that this is a one-off measure that would not be imposed on citizens of larger debtor nations elsewhere in Europe.”

The Hang Seng China Enterprises Index gained 0.8 percent to 10,882.12.

To contact the reporters on this story: Jonathan Burgos in Singapore at jburgos4@bloomberg.net; Adam Haigh in Sydney at ahaigh1@bloomberg.net

To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net

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