Stocks rise on global recovery strength
Updated: 2010-12-03 07:13
(HK Edition)
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Hong Kong's Hang Seng Index (HSI) rose as improving economic reports and speculation Europe's debt crisis will be contained boosted confidence in a global recovery.
The HSI rose 0.9 percent to 23,448.78 at the close. The Hang Seng China Enterprises Index gained 1.1 percent to 13,087.40.
Yue Yuen rose 1.1 percent to HK$28.75. Techtronic Industries climbed 1.4 percent to HK$8.61. Cosco Pacific Ltd advanced 4.9 percent to HK$12.94, the biggest gain in the HSI.
The US Federal Reserve said the economy gained strength across much of the US as hiring improved, manufacturing expanded and retailers anticipated a stronger holiday shopping season. European Central Bank President Jean-Claude Trichet said policy makers must assert authority to fight "demanding" market conditions in Europe, and that investors are underestimating policy makers' determination to halt the region's debt crisis.
Oil and metal producers gained as the economic reports raised optimism commodity demand will increase. Cnooc climbed 3.2 percent to HK$17.54, and PetroChina Co increased 2.4 percent to HK$9.97. China Petroleum & Chemical Corp advanced 1.5 percent to HK$7.39. Jiangxi Copper Co jumped 3.7 percent to HK$24.05, while Zhaojin Mining Industry Co climbed 4.4 percent to HK$30.75. Aluminum Corp of China Ltd gained 1.4 percent to HK$7.11.
Chinese power producers rose after the state-run Xinhua News Agency said the government ordered a freeze in 2011 contract prices for coal used in power stations. Huaneng Power International surged 6.8 percent to HK$4.42, while Datang International Power Generation Co jumped 6.8 percent to HK$2.99.
Power-station coal prices under term contracts must be unchanged from 2010 levels, Xinhua reported Wednesday, citing Cao Changqing, head of pricing at the National Development and Reform Commission. "Any form of price increase is not allowed."
Futures on the gauge gained 0.7 percent to 23,415.
Bloomberg
(HK Edition 12/03/2010 page3)