Asian Economic News
Hang Seng May Add To Gains
11/11/2009 8:34 PM ET
(RTTNews) -
The Hong Kong stock market has finished higher now in four straight sessions, gathering more than 1,150 points or 5 percent en route to a 15-month closing high. The Hang Seng Index ended above the 22,625-point plateau, and now analysts are anticipating further upside when the market opens for business on Thursday.
The global forecast for the Asian markets calls for modest gains on strength from the financial and property sectors - although a mild retreat in the price of oil and other commodities may pare the overall market gains. The European and U.S. markets finished with mild gains, and now the Asian markets are also tipped to trend higher.
The Hang Seng finished sharply higher again on Wednesday, thanks to gains among the financials and the automobile producers.
For the day, the index surged 359.05 points or 1.61 percent to finish at 22,627.21 after trading between 22,396.04 and 22,643.66 on turnover of 72.26 billion Hong Kong dollars.
Among the gainers, HSBC Holdings jumped 5.98 percent, while Denway Motors climbed 6.06 percent, Great Wall Motor Co added 2.46 percent, Dongfeng Motor Group was up 3.44 percent, China Life Insurance climbed 1.3 percent, PICC Property & Casualty Co added 2.89 percent and China Taiping Insurance Holdings Company was up 0.54 percent.
Finishing lower, Sinotruk (Hong Kong) eased 0.21 percent, while BYD Co lost 0.57 percent, China Motor Bus Co shed 2.03 percent and Ping An Insurance fell 0.41 percent.
The lead from Wall Street is firmly positive as stocks rose by respectable margins on Wednesday, despite few market catalysts due to the Veterans Day holiday. The major averages all closed firmly in positive territory but well off of their best levels of the day.
Early strength in the markets came amid some positive economic indicators from China, including reports showing strong industrial output and retail sales growth. The data added to the prospect of resurgence in demand for resources.
On the earnings front, Macy's (M) reported a third-quarter net loss that was narrower than expected on sales that topped estimates. Nonetheless, shares of the retailer plunged after the company forecast fourth quarter and full year earnings below analyst estimates.
Shares of American International Group (AIG) also came under pressure after CEO Robert Benmosche told the firm's board of that he is considering stepping down from the position, citing constraints imposed by government overseers.
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