Hong Kong Stocks Rise on U.S., China; Esprit Declines
Hong Kong stocks rose amid increasing confidence on the outlook for China’s growth and that U.S. policy makers will reach a budget deal. Esprit Holdings Ltd. (330) slumped after saying it may post a first-half loss.
Techtronic Industries Co. (669), a maker of power tools that counts North America as its biggest market, climbed 3.9 percent. China Shenhua Energy Co. advanced 2.5 percent after Bocom International Holdings Co. raised its rating on the coal producer. Esprit, a clothier that last month raised money from a rights offer, fell 5.3 percent.
The Hang Seng Index rose 0.5 percent to 22,599.49 as of 10:15 a.m. in Hong Kong, headed for its first gain in three days. Almost four stocks advanced for each that fell on the 50- company measure, with trading volume about 11 percent below the 30-day average for the time of day, according to data compiled by Bloomberg. The Hang Seng China Enterprises Index of mainland companies increased 0.6 percent to 11,373.64.
Futures on the Hang Seng Index (HSI) rose 0.4 percent to 22,594. The HSI Volatility Index (VHSI) fell 0.2 percent to 15.65, indicating traders expect a swing of 4.5 percent for the equity benchmark in the next 30 days.
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