Most Hong Kong Stocks Advance on Consumer, Resources
Most Hong Kong stocks rose, with the city’s benchmark index heading for its first advance in three days, as consumer shares climbed and raw-material producers gained after copper and oil futures rebounded.
The Hang Seng Index (HSI) gained 0.2 percent to 23,228.50 as of 9:33 a.m. in Hong Kong, with more than two shares rising for each that fell. The Hang Seng China Enterprises Index (HSCEI), also known as the H-share index, added 0.3 percent to 10,626.23.
The Hang Seng Index climbed 6.7 percent this month through yesterday, poised for its biggest advance since September 2012, amid signs of economic recovery in China and after the Federal Reserve unexpectedly refrained from cutting stimulus. The equity benchmark traded at 11.1 times estimated earnings yesterday, compared with 15.4 for the Standard & Poor’s 500 Index. The H-share index entered a bull market this month after rebounding more than 20 percent from a June low.
Futures on the S&P 500 were little changed. The gauge yesterday fell for a fourth day from a record high on concern lawmakers won’t reach a budget deal to avoid a government shutdown as Republicans seek to defund President Barack Obama’s landmark health care law. The Conference Board’s index of U.S. consumer confidence slumped in September to a four-month low.
The Fed said after its meeting last week that it wants more signs of strength in the labor market before paring its $85 billion of monthly asset purchases. The central bank is expected to wait until December before taking the first steps in slowing stimulus, according to 24 of 41 economists surveyed Sept. 18-19 by Bloomberg News.
Reports gave conflicting views of China’s recovery. The China Beige Book survey showed the economy slowed this quarter, and investor Jim Chanos told a conference in New York he isn’t convinced by the nation’s improving fundamentals. State economist Fan Jianping sees 7.7 percent gross-domestic product expansion this year, exceeding the state’s 7.5 percent target, according to a China Securities Journal report.
Raw-material producers rebounded as oil headed for its first advance in five days and copper futures snapped a three-day loss.
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