Hong Kong Stocks Rise as Obama Pulls U.S. Back From Syria Brink

Hong Kong stocks rose for a fifth day as President Barack Obama called for a pause in authorizing a U.S. military strike on Syria.

The Hang Seng Index (HSI) gained 0.4 percent to 23,067.62 as of 9:32 a.m. in Hong Kong as Obama pulled the U.S. from the brink of military action and after Nomura Holdings Inc. and UBS AG joined other banks in boosting estimates for China’s economic growth. The Hang Seng China Enterprises Index (HSCEI) of mainland shares traded in the city advanced 0.5 percent, extending a more than 20 percent increase from this year’s low, meeting some traders’ definition of a bull market.

“People are starting to not panic as much with Syria,” George Boubouras, Melbourne-based chief investment officer at Equity Trustees Ltd., where he helps oversee about $28 billion, said by telephone. “The pulse is picking up for manufacturing globally. We are fully invested and have a tactical overweight to global equities.”

Futures on the Standard & Poor’s 500 Index were little changed today after Obama, in a live address from Washington, said he had called for a pause in a Senate vote authorizing a military strike against Syria to allow time for international talks on a Russian proposal for Syria to surrender its chemical weapons.

Nomura Holdings and UBS revised their 2013 growth target for China to 7.6 percent from 7.5 percent, joining Goldman Sachs Group Inc. and JPMorgan Chase & Co. in raising projections. Chinese Premier Li Keqiang said major economic indicators for August have shown trends that the economy is recovering, according to Xinhua News Agency.

China’s broadest measure of new credit almost doubled in August from the previous month. Aggregate financing was 1.57 trillion yuan ($257 billion), the People’s Bank of China said yesterday, topping the 950 billion yuan median estimate of 10 analysts surveyed by Bloomberg News. New yuan loans from banks accounted for about 45 percent of the total, down from July’s 87 percent, as non-traditional credit played a bigger role.

The Hang Seng Index rose 1.4 percent this year through yesterday and traded at 11 times estimated earnings, compared with 15.3 for the S&P 500.

To contact the reporter on this story: Kana Nishizawa in Hong Kong at knishizawa5@bloomberg.net

To contact the editor responsible for this story: Sarah McDonald at smcdonald23@bloomberg.net

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