Hong Kong stocks rose, with the benchmark index poised for its biggest monthly gain since September, as banking shares rebounded. Yanzhou Coal Mining Co. dropped after saying it will post an unexpected loss.
Kunlun Energy Co. (135), a mainland gas supplier controlled by PetroChina Co., rose 2.2 percent to lead the Hang Seng Index’s advance. Agricultural Bank of China Ltd. (601288), the nation’s No. 3 lender, climbed 1 percent. Yanzhou Coal, China’s fourth-largest producer of the fuel, slumped 4.8 percent.
The Hang Seng Index rose 0.2 percent to 21,886.38 as of 9:54 a.m. in Hong Kong, with about five shares gaining for every four that fell. The Hang Seng China Enterprises Index gained 0.5 percent to 9,685.30 after yesterday dropping the most in two weeks. Official data due Aug. 1 is expected to show a contraction in mainland manufacturing.
“We expect the second half to start picking up as the government gives attention to rescue the economy,” said Lewis Wan, Hong Kong-based chief investment officer at Pride Investments Group Ltd. “China said that 7 percent is their bottom for economic growth, so we expect some policies to be coming out.”
The Hang Seng Index (HSI) fell 3.6 percent this year through yesterday, the second-worst performance among 24 developed markets tracked by Bloomberg, as shares slid on weaker growth in China and concern the Federal Reserve will taper stimulus.
To contact the editor responsible for this story: Nick Gentle at firstname.lastname@example.org