Hong Kong Stocks Rise on Prospects for U.S. Stimulus

Hong Kong stocks climbed, with the benchmark index rising a second day, after Federal Reserve nominee Janet Yellen signaled she will maintain record stimulus.

The Hang Seng Index (HSI) gained 0.9 percent to 22,851.44 as of 9:31 a.m. in Hong Kong, with all but three shares on the 50-member gauge advancing. The Hang Seng China Enterprises Index lost 1.2 percent to 10,518.16.

The Hang Seng Index advanced 14 percent from this year’s low on June 24 through yesterday amid signs China’s economy is stabilizing. Hong Kong’s benchmark index traded at 10.82 times estimated earnings yesterday, compared with 16.17 for the Standard & Poor’s 500 Index.

Futures on the S&P 500 were little changed today. The equity gauge climbed 0.5 percent yesterday, extending its record high. Yellen, nominated to succeed Fed Chairman Ben S. Bernanke, testified to the Senate that removing monetary stimulus too soon would threaten a fragile economic recovery. Jobless claims for the week ended Nov. 9 fell less than estimated, adding to the case for delaying reduction of asset purchases.

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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