Hong Kong Bourse Tipped To Find Continued Support

The Hong Kong stock market has climbed higher in three straight sessions, advancing more than 450 points or 1.8 percent along the way. The Hang Seng Index now rests just above the 25,730-point plateau and it's looking at another higher open again on Monday.

The global forecast for the Asian markets is upbeat on renewed expectations for fiscal stimulus. The European and U.S. markets were sharply higher and the Asian bourses are tipped to open in similar fashion.

The Hang Seng finished sharply higher on Friday following gains from the financials, properties, casinos and insurance companies.

For the day, the index jumped 238.76 points or 0.94 percent to finish at 25,734.22 after trading between 25,314.27 and 25,798.11.

Among the actives, New World Development surged 6.33 percent, while CSPC Pharmaceutical soared 4.01 percent, China Mengniu Dairy spiked 3.87 percent, Sun Hung Kai Properties accelerated 3.64 percent, WH Group jumped 2.74 percent, Galaxy Entertainment climbed 2.63 percent, Ping An Insurance gathered 2.24 percent, Sands China perked 1.75 percent, BOC Hong Kong advanced 1.72 percent, Hong Kong & China Gas added 1.71 percent, AIA Group gained 1.60 percent, Tencent Holdings dropped 1.21 percent, China Life Insurance rose 0.90 percent, CNOOC was up 0.35 percent, AAC Technologies lost 0.28 percent, China Petroleum and Chemical (Sinopec) and CITIC both fell 0.22 percent, Industrial and Commercial Bank of China collected 0.20 percent, China Mobile eased 0.08 percent and China Resources Land was unchanged.

The lead from Wall Street is broadly positive as stocks opened higher on Friday and the gains accelerated as the day progressed.

The Dow added 306.61 points or 1.20 percent to 25,886.01, while the NASDAQ jumped 129.37 points or 1.67 percent to 7,895.99 and the S&P 500 rose 41.08 points or 1.44 percent to 2,888.68. For the week, the Dow shed 1.5 percent, the NASDAQ lost 0.8 percent and the S&P fell 1 percent.

The rally on Wall Street reflected optimism about the world's central banks providing stimulus in order to prevent a global recession. European Central Bank official Olli Rehn expressed the need for significant easing in September to support the flagging eurozone economy, spurring investors.

The expectations for more stimulus fueled a pullback by U.S. treasuries and a subsequent increase in bond yields. The yield on the benchmark ten-year note had dropped below the two-year yield on Wednesday, sparking fears of an impending recession and a sell-off on Wall Street.

In economic news, the University of Michigan noted a significant deterioration in U.S. consumer sentiment in August. Also, the Commerce Department reported an unexpected slump in housing starts in July but a sharper than expected increase in building permits.

Crude oil futures settled higher Friday as recession fears faded amid hopes global central banks will announce further stimulus to revive economic growth. West Texas Intermediate Crude oil futures for September ended up $0.40 or 0.7 percent at $54.87 a barrel.

Closer to home, Hong Kong will see July figures for unemployment later today; in June, the jobless rate was 2.8 percent.

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