Hong Kong Stocks Advance Amid Optimism for U.S. Debt Deal

Hong Kong stocks gained a second day after reopening from a holiday amid signs of a deal to avoid a breach of the U.S. debt limit and a possible default.

The Hang Seng Index advanced 0.8 percent to 23,398.68 as of 9:35 a.m. in Hong Kong, extending last week’s gains. The Hang Seng China Enterprises Index (HSCEI), also known as the H-share index, added 0.9 percent to 10,670.87.

The Hang Seng Index (HSI) climbed 17 percent from this year’s low in June through Oct. 11 amid signs China’s growth is stabilizing. Hong Kong’s equity benchmark traded at 11.1 times estimated earnings on Oct. 11, compared with 15.4 for the Standard & Poor’s 500 Index yesterday.

Futures on the U.S. equity gauge added 0.2 percent after the measure rose 0.4 percent yesterday. An agreement being discussed by Democrats and Republicans would suspend the $16.7 trillion debt limit through Feb. 7 and fund the government through Jan. 15, according to a person familiar with the matter who spoke on condition of anonymity. A partial government shutdown began Oct. 1 and borrowing authority will lapse Oct. 17.

China issues gross domestic product data Oct. 18, with economists predicting 7.8 percent expansion in the three months to Sept. 30 from 7.5 percent in the previous period. The People’s Bank of China said yesterday new yuan loans topped estimates. Exports unexpectedly fell in September.

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

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.