Hong Kong Stocks Advance for Third Day on U.S. Data
Hong Kong stocks rose, with the city’s benchmark index rising a third day, after U.S. home prices climbed the most since 2006 and orders for durable goods beat estimates, boosting earnings prospects for Asian exporters.
Techtronic Industries Co. (669), the maker of Ryobi power tools that counts the U.S. as its biggest market, gained 4.5 percent. China Communications Construction Co., which helped build sections of the new San Francisco Bay Bridge, jumped 4.7 percent after posting full-year profit that beat analyst estimates. Cheung Kong Holdings Ltd. added 1.6 percent after the developer controlled by Asia’s richest man reported full-year profit that surpassed expectations.
The Hang Seng Index (HSI) gained 0.8 percent to 22,491.09 as of 10:04 a.m. in Hong Kong. The Hang Seng China Enterprises Index rose 1.5 percent to 11,093.22. The Hang Seng Index climbed to its highest since April 2011 in January amid signs the U.S. economy is recovering before sliding in the past two months. The gauge fell 6.3 percent since Jan. 30 through yesterday on concern that China will add property curbs and Cyprus’s problems will reignite Europe debt crisis.
“Average U.S. investors feel more secure about their jobs, seeing their house prices go up, and think the crisis is well behind them,” said Andrew Pease, Sydney-based chief investment strategist at Russell Investment Group, which manages about $160 billion. “We like emerging markets and Asia simply because, even though there’s concern about Chinese policy tightening, earnings numbers still look good.”
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