Hong Kong Stocks Advance for Third Day on U.S. DataJonathan Burgos and Yoshiaki Nohara
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., a maker of power tools that counts the U.S. as its biggest market, gained 2.8 percent. China Communications Construction Co., which helped build sections of the new San Francisco Bay Bridge, jumped 7.3 percent on full-year profit that beat estimates. China Petroleum & Chemical Corp., Asia’s biggest refiner, rose 2 percent after China revised fuel-price controls.
The Hang Seng Index gained 0.7 percent to 22,464.82 at the close, while the Hang Seng China Enterprises Index of mainland companies rose 1 percent to 11,033.61. The benchmark Hang Seng Index in January climbed to its highest since April 2011 amid signs the U.S. economy is recovering before sliding in the past two months on concern China will add property curbs and that Cyprus’s problems will reignite Europe’s 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.”
Volume on the benchmark Hang Seng Index was about 1.6 percent lower than the 30-day intraday average, according to data compiled by Bloomberg. Shares on the gauge traded at 10.9 times estimated earnings, compared with 14.1 for the Standard & Poor’s 500 Index and 12.6 for the Stoxx Europe 600 Index, according to data compiled by Bloomberg.
Futures on the Standard & Poor’s 500 Index added 0.1 percent. The U.S. equity gauge rose 0.8 percent in New York yesterday as residential real estate prices increased in January by the most since June 2006, according to the S&P/Case-Shiller index. Orders for U.S. durable goods climbed more than forecast in February, rising the most since September, according to a Commerce Department report.
Exporters advanced. Techtronic climbed 2.8 percent to HK$19.22. AAC Technologies Holdings Inc., a supplier of acoustic components used in Apple Inc. products, jumped 8.2 percent to HK$36.25.
China Communications Construction gained 7.3 percent to HK$7.10, the most since May 22. The company reported a full-year profit of 12.2 billion yuan ($2 billion), exceeding the average estimate of 11.3 billion yuan by 16 analysts compiled by Bloomberg.
Fosun International Ltd. surged 9.8 percent to HK$5.39 after the Shanghai-based steelmaker reported full-year net profit increased 8.9 percent to 3.7 billion yuan.
Wharf (Holdings) Ltd., the developer controlled by the family of billionaire Peter Woo, jumped 7 percent to HK$68.95 after DBS Vickers Securities raised its rating to buy from hold.
Energy shares rose after China changed its system for setting gasoline and diesel prices to more closely track refiners’ crude prices. China Petroleum, also known as Sinopec, increased 2 percent to HK$9.10. PetroChina Co., the nation’s biggest energy company, added 0.6 percent to HK$10.24.
“This is a big milestone for the energy industry and a big win for the refiners,” said Gordon Kwan, the head of energy research at Mirae Asset Securities Ltd. in Hong Kong. “The new scheme should lead to more market-driven prices, which will lead to improved profitability.”
Hang Seng Index futures added 0.8 percent to 22,447. The HSI Volatility Index slipped 3.8 percent to 15.15, indicating traders expect a swing of 4.3 percent for the equity benchmark in the next 30 days.