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Hong Kong Stocks Rebound After Break; Developers Increase

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April 2 (Bloomberg) -- Hong Kong stocks rose as the market reopened from the Easter holiday after capping last week its first quarterly decline since June.

Shimao Property Holdings Ltd. led Chinese developers higher, gaining 4.8 percent after Maybank Kim Eng Holdings Ltd. and BNP Paribas SA reiterated buy ratings on the shares. PetroChina Co., Asia’s biggest company by market value, gained 1 percent as China’s oil consumption increased in February. Yue Yuen Industrial Holdings Ltd., which makes shoes for Nike Inc., slid 2.2 percent after after data on U.S. manufacturing missed estimates.

“For Hong Kong, it already dropped a lot in the past two months, but the U.S. market is still at a historic high,” Linus Yip, a Hong Kong-based strategist at First Shanghai Securities Ltd., said by telephone. “It seems to me there is a technical rebound.”

The Hang Seng Index rose 0.3 percent to 22,367.82 at the close after rising as much as 0.7 percent and falling 0.4 percent. The index fell 6.4 percent through March 28 from this year’s high on Jan. 30. The Hang Seng China Enterprises Index slid 0.8 percent to 10,811.44 after rising as much as 0.9 percent.

The benchmark Hang Seng Index dropped 1.6 percent in the first quarter amid concern China will add property curbs and that Cyprus’s banking woes will reignite Europe’s debt crisis. Volume on the benchmark Hang Seng Index was 11 percent lower than the 30-day average, according to data compiled by Bloomberg.

Shares on the gauge traded at 10.8 times estimated earnings, compared with 14.1 for the Standard & Poor’s 500 Index and 12.7 for the Stoxx Europe 600 Index, according to data compiled by Bloomberg.

Chinese Developers

Chinese developers gained after home prices jumped and Credit Suisse Group AG said property curbs announced by local governments during the Easter Holiday were milder than expected. The Hang Seng Property Index fell 11 percent from this year’s high through March 28.

Shimao rose 4.8 percent to HK$15.62. Guangzhou R&F Properties Co. gained 2 percent to HK$13.28 and Sino-Ocean Land Holdings Ltd. rallied 1.5 percent to HK$4.75.

Oil companies gained after oil-product apparent consumption in China rose 4.1 percent to 19.3 million tons in February, the National Development and Reform Commission said in a statement on its website March 29.

PetroChina gained 1 percent to HK$10.28. China Oilfield Services Ltd., a Beijing-based drilling services company, rose 1.5 percent to HK$16.50. Cnooc Ltd., China’s biggest offshore oil explorer, added 1.1 percent to HK$15.08.

U.S. Manufacturing

Futures on the Standard & Poor’s 500 Index rose 0.2 percent today. The index fell 0.5 percent in New York yesterday, retreating from a record high.

The Institute for Supply Management’s factory index fell to 51.3 in March from 54.2 February, the Tempe, Arizona-based group said. The median forecast of economists surveyed by Bloomberg was for 54. A reading of 50 is the dividing line between growth and contraction.

Yue Yuen declined 2.2 percent to HK$24.75. Li & Fung Ltd., a supplier of clothes and toys to Wal-Mart Stores Inc. and Target Corp., fell 0.8 percent to HK$10.62. Techtronic Industries Co., which gets 72 percent of its revenue from North America, slid 0.3 percent to HK$18.84, paring a decline of as much as 2.8 percent.

Hang Seng Index futures gained 0.3 percent to 22,389. The HSI Volatility Index rose 2.4 percent to 15.04, indicating traders expect a swing of 4.3 percent for the equity benchmark in the next 30 days.

To contact the reporter on this story: Eleni Himaras in Hong Kong at ehimaras@bloomberg.net

To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net

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