Hong Kong stocks rose, with the city’s benchmark index heading for a third straight weekly advance, as raw material producers gained after oil and metals prices rebounded.
Aluminum Corp. of China Ltd., the country’s biggest supplier of the lightweight metal, gained 2.2 percent. Cnooc Ltd., the nation’s largest offshore energy explorer, increased added 0.6 percent. Swire Properties Ltd., a landlord whose tenants include Time Warner Inc., rose 1.5 percent after its chief executive officer said Chinese rental income will be “very strong.” Pacific Basin Shipping Ltd. fell 5.4 percent after saying it will sell convertible bonds.
The Hang Seng Index increased 0.7 percent to 20,734.94 at the close. Two shares rose for each that fell on the gauge, with trading volume 25 percent above the 30-day average. The measure advanced 0.5 this week, capping the longest run of weekly advances since April, on speculation China will follow the U.S. and Japan in adding stimulus amid signs the slowdown in the world’s second-largest economy is deepening.
“Commodity prices have done well as a result of stimulus measures,” said Yoji Takeda, who helps oversee about $1.2 billion as head of Asian equities at RBC Investment Management (Asia) Ltd. “The measures could help boost the U.S. and global economies but not in a big way until we see a move from China.”
The Hang Seng China Enterprises Index of mainland companies increased 1 percent to 9,804.77. The gauge is down 2.3 percent this year through yesterday, compared with a 12 percent gain for the Hang Seng Index, amid concern China’s government isn’t loosening monetary policy or introducing stimulus policies fast enough to counter an economic slowdown.
Futures on the S&P 500 Index added 0.3 percent today. The gauge slid yesterday for the third time in four days as data from the U.S., China, Europe and Japan increased concern a global economic slowdown is worsening.
The International Monetary Fund will cut economic forecasts for the global economy “by a few decimal points,” a fund official said yesterday. The most recent IMF forecast, released in July, projected 2012 global growth of 3.5 percent. The fund cut its estimate for next year to 3.9 percent, from an April forecast of 4.1 percent.
Raw material producers advanced as oil rose in New York, rebounding from a four-day drop. Gold climbed for the highest level in almost seven months, while aluminum and copper futures gained.
Aluminum Corp. rose 2.2 percent to HK$3.27. Zijin Mining Group Co., China’s biggest gold miner, climbed 2 percent to HK$3.13. Jiangxi Copper Co., China’s largest producer of the metal, added 0.4 percent to HK$19.30. Cnooc rose 0.6 percent to HK$15.74.
Swire Properties increased 1.5 percent to HK$23.55. The developer is building shopping malls, office buildings and a hotel in China in the next four years as it expects rental income from the mainland to remain strong, CEO Martin Cubbon told Bloomberg Television in Beijing yesterday.
Henderson Land Development Co., the Hong Kong builder controlled by billionaire Lee Shau-kee, climbed 2.1 percent to HK$53.85. Citic Securities Co. raised its rating to overweight from hold and increased its share-price forecast by 15 percent to HK$58.64, saying new residential projects will boost earnings.
The Hang Seng Index traded at 10.8 times estimated earnings as of yesterday, compared with 9.3 for the Shanghai Composite Index and 14.1 for the Standard & Poor’s 500 Index.
Futures on the Hang Seng Index added 0.4 percent to 20,715 today. The HSI Volatility Index declined 3.4 percent to 16.92, the lowest since June 1 last year, indicating traders expect a swing of 4.9 percent in the equity benchmark in the next 30 days.
Among stocks that fell, Pacific Basin slipped 5.4 percent to HK$3.68. The company said yesterday it plans to raise $123.8 million, selling convertible bonds.
Li & Fung Ltd., the world’s largest supplier of toys and clothes to retailers, dropped 2.6 percent to HK$12.20 after an agreement giving Wal-Mart Stores Inc. the option to purchase a unit was terminated.