Hong Kong Stocks Paced by HSBC Advance Amid Light Turnoverby
Volume on Hang Seng Index 40% lower than 30-day average
Cnooc leads gains after ending dispute with Husky Energy
Hong Kong stocks rebounded after their steepest loss in five weeks amid lower-than-average turnover as HSBC Holdings Plc extended gains and oil prices climbed.
The Hang Seng Index rose 0.4 percent at the close, after sliding the most since June 24 on Wednesday. Volume on the measure was 40 percent lower than the 30-day average. HSBC headed for its biggest two-day gain in six weeks after announcing a $2.5 billion share buyback. Cnooc Ltd. jumped the most on the gauge as U.S. oil traded around $41 a barrel and the company ended a dispute over gas prices with Husky Energy Inc. The Shanghai Composite Index rose in afternoon trading to gain 0.1 percent.
The advance came as Asian equities bounced back from their worst day since the U.K.’s vote on June 23 to leave the European Union on signs a global stock rebound that took hold in July has started to falter. The Hang Seng Index has risen 4.6 percent since the referendum. While central banks and governments have signaled unprecedented support, Japan’s latest efforts haven’t had their intended effect amid concern the plans won’t be enough to revive price growth.
“It’s just a rebound after yesterday’s drop,” said Daniel So, strategist at CMB International Securities Ltd. in Hong Kong. "The rally over the past month has lacked fundamental support because it has been built on optimism for central banks to ease. But so far none of the major central banks eased significantly."
HSBC gained 2.7 percent after saying on Wednesday it plans more share repurchases while keeping its dividend at the current level for the foreseeable future. Cnooc rose 3.1 percent, its biggest gain since June 20. The company and Husky resolved a dispute by agreeing to lower prices paid for natural gas from the Liwan project that the two companies share in the South China Sea.
The Shanghai Composite rose to 2,982.43. The benchmark gauge has risen 1 percent over the past three days, its best such streak since July 14.
Bank of Jiangsu Co., which listed in Shanghai on Tuesday, continued to see its share price soar as it rose by the daily maximum for a third day. China’s market for initial public offerings is the hottest it has ever been as investors snap up the new equities after officials asked arrangers and companies to limit deal sizes in the first half of the year to avoid oversupply.