Hong Kong stocks rose, with the benchmark index rising the first time in three days ahead of data today expected to show expansion in China’s exports.
The Hang Seng Index gained 0.5 percent to 21,704.65 as of 9:33 a.m. in Hong Kong, rebounding from the biggest drop in a month yesterday. The Hang Seng China Enterprises Index (HSCEI) increased 0.7 percent to 9,515.66 today. Overseas shipments may have risen 2 percent year-on-year in July after contracting 3.1 percent in June, according to analysts surveyed by Bloomberg.
The Hang Seng Index (HSI) retreated 4.7 percent this year through yesterday, the biggest decline among major markets tracked by Bloomberg, amid concern China’s growth is slowing and speculation the Fed will pare bond purchases. The gauge traded at 10.29 times estimated earnings yesterday, compared with 15.33 for the Standard & Poor’s 500 Index.
The Hang Seng China Enterprises Index, also known as the H-share index, had fallen as much as 27 percent in June from a Feb. 1 high, meeting some investors’ definition of a bear market.
Futures on the S&P 500 gained 0.2 percent after the benchmark gauge lost 0.4 percent yesterday, its first three-day drop since June 12. Fed Bank of Cleveland President Sandra Pianalto said yesterday there has been “meaningful improvement” in the labor market and that tapering of record stimulus may be warranted if it continues to strengthen.
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