Hong Kong Stocks Rise on U.S. Data; Sinopec Declines
Hong Kong stocks rose, with the benchmark index capping a second weekly advance, on U.S. manufacturing data. A gauge of mainland shares listed in the city fell gains after China Petroleum (386) & Chemical Corp. slid.
Tencent Holdings Ltd., Asia’s largest Internet company by market value, rose 2.8 percent, as information technology stocks led gains. Cathay Pacific Airways Ltd., the city’s biggest carrier, rose 4 percent, leading gains on the Hang Seng Index. China Petroleum, also known as Sinopec, sank 1.2 percent after surging yesterday by the most since December 2008.
The Hang Seng Index added 0.8 percent to 22,568.24 at the close in Hong Kong, rising 1.2 percent for the week. Almost twice as many stocks advanced as fell on the 50-member gauge today. The Hang Seng China Enterprises Index (HSCEI), also known as the H-share index, slid 0.4 percent. Shares fell yesterday after a Chinese manufacturing gauge slumped to a seven-month low.
“The market atmosphere is good today, lifted by the U.S. manufacturing data after disappointing numbers from China,” said Sam Chi Yung, a strategist at Delta Asia Securities Ltd.
Hong Kong’s benchmark gauge has fallen 3.2 percent this year, the second-worst performer among 24 developed markets tracked by Bloomberg. The H-share gauge dropped 8.1 percent for the period and traded at 6.6 times estimated earnings yesterday, compared with its five-year average of 10.
Citic Telecom International Holdings Ltd. jumped 4 percent to HK$2.87, extending its gains since reporting earnings on Feb. 18. The stock jumped 23 percent for the week. Cathay Pacific gained 4 percent to HK$15.66, while Belle International Holdings Ltd. (1880), China’s largest seller of footwear, advanced 3 percent to HK$8.80.
Tencent rose 2.8 percent to HK$580.50 to become the biggest contributor to the Hang Seng Index’s advance. The stock yesterday slid the most in more than two weeks.
Futures (SPX) on the Standard & Poor’s 500 Index added 0.3 percent today. The measure gained 0.6 percent yesterday after the Markit Economics preliminary index of U.S. factory activity rose to 56.7 and Labor Department figures indicated fewer applications for unemployment benefits last week.
Sinopec fell 1.2 percent to HK$6.54. The stock surged yesterday after announcing plans to seek private investors for its unit.
Lenovo Group Ltd. (992), the world’s biggest maker of personal computers, slid 2.4 percent to HK$7.90, the biggest drop on the Hang Seng Index, after Bank of America Corp. cut its rating on the stock to underperform from buy.
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