Hong Kong Stocks Climb Most in 3 Weeks on Chinese DataKana Nishizawa
Hong Kong stocks climbed the most in three weeks as mainland service industries rebounded and the risk of protests in Hong Kong’s financial district eased.
A measure of financial companies jumped 1.1 percent as Bank of Communications Co. and Industrial & Commercial Bank of China Ltd. rallied. China Mobile Ltd., the world’s largest phone company by users, rose 2.5 percent after the China Daily said it started taking preorders for Apple Inc.’s iPhone 6. Henderson Land Development Co. led gains by Hong Kong developers.
The benchmark Hang Seng Index added 1 percent to 24,993.69 as of 10:43 a.m. in Hong Kong. The Hang Seng China Enterprises Index of mainland shares advanced 1.8 percent to 11,161.97. A non-manufacturing Purchasing Managers’ Index by HSBC Holdings Plc and Markit Economics jumped to 54.1 in August from 50, the biggest increase since at least October 2011.
“The services data is boosting investor sentiment,” said Francis Lun, the Hong Kong-based chief executive officer of Geo Securities Ltd.
A separate report today showed the official services Purchasing Managers’ Index rose to 54.4 from 54.2 in July. Readings above 50 indicate expansion.
The risk of Hong Kong’s financial district being paralyzed by a mass sit-in is diminishing after a pro-democracy leader said the strategy of threatening civil disobedience had failed to persuade China to make concessions on changes to the city’s leadership election.
The downtown occupation will be smaller, staged on a day when it causes least disruption, and participants won’t resist police officers, Benny Tai Yiu-Ting, founder of Occupy Central with Love and Peace, said in an interview yesterday. Tai said it was clear China won’t backtrack on rules laid down Aug. 31 that include the screening of candidates for the 2017 poll.
“If the Occupy Central movement is weakening, some investors may take that positively,” said Katsumi Takagaki, the Hong Kong-based investment officer at Sumitomo Mitsui Trust (HK) Ltd., whose parent oversees about $474 billion.
The Hang Seng China Enterprises Index traded at 7.6 times estimated earnings yesterday, compared with 11.4 for the Hang Seng Index and 16.7 for the Standard & Poor’s 500 Index.