Hong Kong Stocks Advance on U.S., China Economic Data

Hong Kong stocks gained, with the city’s benchmark index heading for its first advance in six days, after U.S. payrolls and China’s industrial production increased more than expected.

The Hang Seng Index climbed 0.1 percent to 22,760.00 as of 9:34 a.m. in Hong Kong. The gauge dropped 2.2 percent last week amid concern the Federal Reserve may cut stimulus sooner than expected. The Hang Seng China Enterprises Index lost 0.1 percent to 10,377.61.

Futures on the Standard & Poor’s 500 Index fell 0.1 percent. The gauge climbed 1.3 percent on Nov. 8 in New York as a better-than-forecast jobs report added to signs growth is strong enough for the economy to withstand a stimulus reduction. Tapering is to begin in March, based on a Bloomberg survey last week, with analysts expecting monthly bond purchases to fall to $70 billion from $85 billion.

U.S. employers added 204,000 workers after a revised 163,000 gain in September that was larger than previously estimated, Labor Department figures showed today in Washington. The increase in payrolls topped the most optimistic forecast in a survey of economists.

The Hang Seng Index (HSI) advanced 15 percent from this year’s low on June 24 though Nov. 8 amid signs China’s economy is stabilizing. Hong Kong’s benchmark index traded at 10.87 times estimated earnings, compared with 15.98 for the S&P 500 yesterday.

China Output

Industrial production in China rose 10.3 percent last month from a year earlier, the nation’s statistics bureau said Nov. 9, exceeding the 10 percent median estimate in a Bloomberg survey of economists and accelerating from 10.2 percent growth in September. Inflation came in at 3.2 percent, below the 3.5 percent full-year government target and the 3.3 percent projected by economists. Retail sales rose 13.3 percent from a year earlier and producer prices fell 1.5 percent.

President Xi Jinping and Chinese Communist Party leaders tomorrow conclude a four-day gathering aimed at mapping out a blueprint for changes that include reducing the government’s role in the economy and spurring foreign investment. Failure to implement reforms on issues from interest rates to local government debt and land ownership risks impeding boosting incomes and spurring hundreds of millions of rural residents to move to the cities.

To contact the reporter on this story: Jonathan Burgos in Singapore at jburgos4@bloomberg.net

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

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