June 24 (Bloomberg) -- Hong Kong stocks gained, with the city’s benchmark index rebounding after falling the most in three months yesterday, as technology shares rose.
Coolpad Group Ltd. jumped 13 percent after the smartphone maker said profit from January through May increased from a year earlier. Power Assets Holdings Ltd. rose 1.9 percent, with the electricity provider leading the Hang Seng Index higher. Cnooc Ltd., China’s largest offshore oil producer, slid 1.5 percent after crude futures declined amid speculation output won’t be disrupted by escalating violence in Iraq, OPEC’s second-largest oil producer.
The Hang Seng Index climbed 0.3 percent to 22,880.64 at the close in Hong Kong after sinking 1.7 percent yesterday. The Hang Seng China Enterprises Index, also known as the H-share index, advanced 0.5 percent to 10,250.16.
“The stock market has gotten so cheap,” Jonathan Garner, Hong Kong-based chief Asia and emerging-market strategist at Morgan Stanley, said on Bloomberg Television. “That alone is enough to lead to some kind of a rally as we price out the tail risk of a complete hard landing. We’re not really seeing conclusive signs of a pickup in China. It’s really more of growth stabilization.”
Hong Kong’s benchmark Hang Seng Index lost 1.8 percent this year, the second-biggest decline among developed equity markets tracked by Bloomberg. The measure was valued at 10.6 times estimated earnings, compared with 16.6 times for the Standard & Poor’s 500 Index as of the last close.
The Hang Seng Index tumbled the most since March 20 yesterday. While better-than-anticipated Chinese manufacturing data sparked early gains in stocks, the advance was wiped out amid concern falling property prices and tighter liquidity will weigh on economic growth, said Huaxi Securities Co. The selloff was amplified by concern a democracy poll in Hong Kong may strain ties with the mainland, according to Asian Capital Holdings Ltd. and Ample Capital Ltd.
The Conference Board today said its index of China leading economic indicators increased 0.7 percent in May after rising 1 percent in April and March.
Futures on the S&P 500 Index slid 0.1 percent. The U.S. equity benchmark index yesterday fell less than 0.1 percent, after ending last week at a record, as General Electric Co. led industrial shares lower to offset gains among energy producers. Separately, a private gauge of U.S. manufacturing showed unexpected growth.
Power Assets rose 1.9 percent to HK$66.50, the biggest gain on the Hang Seng Index. China Merchants Holdings International Co., which climbed 1.5 percent to HK$24.20, posted the second-largest advance.
Coolpad jumped 13 percent to HK$2.04 after saying it expects higher first-half profit on “significant” growth in smartphone sales. The stock led a measure of technology shares higher on the Hang Seng Composite Index. Lenovo Group Ltd., the world’s biggest PC maker, added 1.2 percent to HK$10.26.
Oil futures slid. While Islamist militants in Iraq have taken control of the Baiji refinery in the north and extended gains to the Jordanian border, they haven’t spread violence to the south, which holds more than three-quarters of the country’s crude output. Cnooc dropped 1.5 percent to HK$13.56.
SPT Energy Group Inc., which provides drilling and other oilfield engineering services, plunged 6.1 percent to HK$4.35 after a block trade of the stock crossed at a 6.9 percent discount to its last close.
China Best Group Holding Ltd. surged 19 percent to 11 Hong Kong cents. The coal producer said Chairman Huang Boqi was approached by potential investors who wanted to buy his shares.
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