Hong Kong Stocks Head for Four-Week High on Stimulus Bets

Hong Kong stocks rose, with the benchmark index headed for a four-week high, after slower-than-expected gains in U.S. hiring boosted bets the Federal Reserve will delay reducing record stimulus.

The Hang Seng Index (HSI) climbed 0.4 percent to 23,404.02 as of 9:31 a.m. in Hong Kong, with about five times as many shares rising as falling. The Hang Seng China Enterprises Index (HSCEI), also known as the H-share index, added 0.4 percent to 10,696.38.

Futures on the Standard & Poor’s 500 Index fell 0.1 percent. The U.S. equity gauge rose 0.6 percent yesterday after payrolls climbed less than forecast in September. Barclays Plc changed its estimate for the start of tapering to March from December after the release of the jobs data, which was delayed by the 16-day government shutdown. The Fed in September refrained from reducing its $85 billion in monthly bond purchases, saying it needed more evidence of economic recovery.

The Hang Seng Index climbed 18 percent from this year’s low in June through yesterday amid signs China’s economy is stabilizing. The equity benchmark traded at 11.1 times estimated earnings yesterday, compared with 15.9 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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