By Sui-Lee Wee and Claire Zhang
HONG KONG/SHANGHAI, Dec 2 (Reuters) - Stocks in Hong Kong and China chalked up a third consecutive session of strong bargain-hunting gains on Wednesday after positive U.S. home sales data restored confidence in a global economic recovery and lifted stocks on Wall Street.
The Hang Seng Index rose 1.28 percent, or 283.12 points to 22,396.27 at midday.
The China Enterprises Index of top locally listed mainland Chinese stocks rose 1.64 percent to 13,446.35.
Sentiment in overseas stock markets also received a lift as concerns receded about the impact of Dubai's debt troubles following news that Dubai World planned to restructure about $26 billion in debt.
Hong Kong's benchmark index has now regained all losses from last Friday's steep stock sell-off amid concern over a possible debt default by Dubai World. But some investors said the recovery could be short-lived.
'What happened with Dubai World is not that simple,' said Peter Lai, director at DBS Vickers. 'We have to wait for more figures from Dubai before we can buy. The market will fluctuate wildly. For the present, short-term speculation is recommended.'
Lai said the upside for Hong Kong's stock index would be limited to the 23,000 level for the next two to three weeks.
Turnover increased to HK$45.19 billion ($5.83 billion) from midday Tuesday's HK$42.93 billion.
Geely Auto rose 9.3 percent during morning trading to an all-time high, boosted by a report that its parent was a step closer to completing its acquisition of Ford Motor's Volvo unit. Geely ended the morning at HK$4.18, up 7.73 percent, with 139 million shares changing hands.
Macau casino operators rose on reports gambling revenues had risen 59 percent from a year earlier, signalling sustained growth in the world's largest gambling market.
Recent debutant Sands China, the Macau unit of Las Vegas Sands, was up 5.66 percent at HK$10.08, while Wynn Macau, a unit of Wynn Resorts gained 5.62 percent to HK$10.34.
Gold counters soared after gold futures rose to a record high on Wednesday as weakness in the U.S. dollar spurred buying of the precious metal as a safehaven investment.
Realgold Mining rose 3.1 percent to HK$15.28, Sino Gold Mining gained 7.84 percent to HK$59.85, and Zijin Mining advanced 3.82 percent to HK$8.98.
SHANGHAI RISES
China's key stock index rose 1.09 percent during the morning, with bank and metals shares strong as confidence mounted that China would keep its economic policy mostly steady in the year ahead while talk of possible government support for banks lifted sentiment.
The Shanghai Composite Index ended the morning at 3,270.469 points, up for a third consecutive session after a sell-off last week shook out nervous investors worried by official warnings over asset price bubbles.
Gaining Shanghai A shares outnumbered losers by 676 to 192 while turnover picked up to 104 billion yuan ($15 billion) from Tuesday morning's 97 billion yuan.
'Economic policy is expected to remain stable, while Central Huijin's possible offer of support to banks offset worries about future fundraising,' said Cao Xuefeng, senior analyst at Western Securities in Chengdu.
He added that the index may challenge the year's high of 3,468 points, hit in August, by late December if next week's annual central economic meeting mapped out steady policies as expected and if economic data for November due next week was upbeat.
Chinese leaders planned to gather for an annual economic policymaking conference from next Monday to Wednesday to chart the course for 2010, government sources told Reuters.
The banking sector rose on market talk that Central Huijin, an arm of China's sovereign wealth fund, may reinject dividends it receives from the four biggest state-owned banks this year, helping to ease pressures to raise funds, which had recently weighed on share prices.
The country's biggest lender, Industrial and Commercial Bank of China, advanced 1.71 percent to 5.35 yuan, while Bank of China rose 1.21 percent to 4.19 yuan.
Metals shares were firmer, with Shandong Gold up 3.17 percent at 87.63 yuan after U.S. gold futures hit a record high.
Shenyin and Wanguo Securities said in a research note that it forecast the benchmark index's core range for next year at 2,900 to 4,200 points, backed by improving earnings at listed companies and expectations for yuan appreciation. It holds a positive view towards the property, pharmaceutical and coal sectors.
ChiNext, China's Nasdaq-style second board for start-up shares, marked its first month since the launch of trade with Huayi Brothers Media Corp, a film company, up its 10 percent daily limit at 64.12 yuan.
Domestic media reported that one of its shareholders and stars, Li Bingbing, had won a high-profile award in Taiwan, while the official China Securities Journal reported that a film produced in cooperation with overseas studios was expected to hit theatres in February and would be also be shown abroad.
(Editing by Chris Lewis)
((suilee.wee@thomsonreuters.com; +852 2843 6314; Reuters Messaging: suilee.wee.reuters.com@reuters.net)) Pan-Asia...... Japan........ S.Korea.... S.E. Asia............ Hong Kong... Taiwan..... Australia/NZ......... India....... China...... OTHER MARKETS: Wall Street........... Gold......... Currency.. Eurostocks........... Oil........... JP bonds... ADR Report.......... LME metals.. US bonds... Stocks News US... Stocks News Europe... DIARIES & DATA: IPO diary & data Asia earnings diary U.S. earnings diary European diary Taiwan diary Wall Street Week Ahead Eurostocks Week Ahead World forecasts TOP NEWS: For top Asian company news, double click on: U.S. company news European company news Forex news Global Economy news Technology news Telecoms news Media news Banking news Politics/General news Asia Macro data A multimedia version of Reuters Top News is available at: http://topnews.session.rservices.com LIVE PRICES & DATA: World Stocks Currency rates Dow Jones/NASDAQ Nikkei FTSE 100 Debt Hong Kong Dollar LME price overview ($1=7.749 Hong Kong Dollar) Keywords: MARKETS HONGKONG CHINA STOCKS (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
HONG KONG/SHANGHAI, Dec 2 (Reuters) - Stocks in Hong Kong and China chalked up a third consecutive session of strong bargain-hunting gains on Wednesday after positive U.S. home sales data restored confidence in a global economic recovery and lifted stocks on Wall Street.
The Hang Seng Index rose 1.28 percent, or 283.12 points to 22,396.27 at midday.
The China Enterprises Index of top locally listed mainland Chinese stocks rose 1.64 percent to 13,446.35.
Sentiment in overseas stock markets also received a lift as concerns receded about the impact of Dubai's debt troubles following news that Dubai World planned to restructure about $26 billion in debt.
Hong Kong's benchmark index has now regained all losses from last Friday's steep stock sell-off amid concern over a possible debt default by Dubai World. But some investors said the recovery could be short-lived.
'What happened with Dubai World is not that simple,' said Peter Lai, director at DBS Vickers. 'We have to wait for more figures from Dubai before we can buy. The market will fluctuate wildly. For the present, short-term speculation is recommended.'
Lai said the upside for Hong Kong's stock index would be limited to the 23,000 level for the next two to three weeks.
Turnover increased to HK$45.19 billion ($5.83 billion) from midday Tuesday's HK$42.93 billion.
Geely Auto rose 9.3 percent during morning trading to an all-time high, boosted by a report that its parent was a step closer to completing its acquisition of Ford Motor's Volvo unit. Geely ended the morning at HK$4.18, up 7.73 percent, with 139 million shares changing hands.
Macau casino operators rose on reports gambling revenues had risen 59 percent from a year earlier, signalling sustained growth in the world's largest gambling market.
Recent debutant Sands China, the Macau unit of Las Vegas Sands, was up 5.66 percent at HK$10.08, while Wynn Macau, a unit of Wynn Resorts gained 5.62 percent to HK$10.34.
Gold counters soared after gold futures rose to a record high on Wednesday as weakness in the U.S. dollar spurred buying of the precious metal as a safehaven investment.
Realgold Mining rose 3.1 percent to HK$15.28, Sino Gold Mining gained 7.84 percent to HK$59.85, and Zijin Mining advanced 3.82 percent to HK$8.98.
SHANGHAI RISES
China's key stock index rose 1.09 percent during the morning, with bank and metals shares strong as confidence mounted that China would keep its economic policy mostly steady in the year ahead while talk of possible government support for banks lifted sentiment.
The Shanghai Composite Index ended the morning at 3,270.469 points, up for a third consecutive session after a sell-off last week shook out nervous investors worried by official warnings over asset price bubbles.
Gaining Shanghai A shares outnumbered losers by 676 to 192 while turnover picked up to 104 billion yuan ($15 billion) from Tuesday morning's 97 billion yuan.
'Economic policy is expected to remain stable, while Central Huijin's possible offer of support to banks offset worries about future fundraising,' said Cao Xuefeng, senior analyst at Western Securities in Chengdu.
He added that the index may challenge the year's high of 3,468 points, hit in August, by late December if next week's annual central economic meeting mapped out steady policies as expected and if economic data for November due next week was upbeat.
Chinese leaders planned to gather for an annual economic policymaking conference from next Monday to Wednesday to chart the course for 2010, government sources told Reuters.
The banking sector rose on market talk that Central Huijin, an arm of China's sovereign wealth fund, may reinject dividends it receives from the four biggest state-owned banks this year, helping to ease pressures to raise funds, which had recently weighed on share prices.
The country's biggest lender, Industrial and Commercial Bank of China, advanced 1.71 percent to 5.35 yuan, while Bank of China rose 1.21 percent to 4.19 yuan.
Metals shares were firmer, with Shandong Gold up 3.17 percent at 87.63 yuan after U.S. gold futures hit a record high.
Shenyin and Wanguo Securities said in a research note that it forecast the benchmark index's core range for next year at 2,900 to 4,200 points, backed by improving earnings at listed companies and expectations for yuan appreciation. It holds a positive view towards the property, pharmaceutical and coal sectors.
ChiNext, China's Nasdaq-style second board for start-up shares, marked its first month since the launch of trade with Huayi Brothers Media Corp, a film company, up its 10 percent daily limit at 64.12 yuan.
Domestic media reported that one of its shareholders and stars, Li Bingbing, had won a high-profile award in Taiwan, while the official China Securities Journal reported that a film produced in cooperation with overseas studios was expected to hit theatres in February and would be also be shown abroad.
(Editing by Chris Lewis)
((suilee.wee@thomsonreuters.com; +852 2843 6314; Reuters Messaging: suilee.wee.reuters.com@reuters.net)) Pan-Asia...... Japan........ S.Korea.... S.E. Asia............ Hong Kong... Taiwan..... Australia/NZ......... India....... China...... OTHER MARKETS: Wall Street........... Gold......... Currency.. Eurostocks........... Oil........... JP bonds... ADR Report.......... LME metals.. US bonds... Stocks News US... Stocks News Europe... DIARIES & DATA: IPO diary & data Asia earnings diary U.S. earnings diary European diary Taiwan diary Wall Street Week Ahead Eurostocks Week Ahead World forecasts TOP NEWS: For top Asian company news, double click on: U.S. company news European company news Forex news Global Economy news Technology news Telecoms news Media news Banking news Politics/General news Asia Macro data A multimedia version of Reuters Top News is available at: http://topnews.session.rservices.com LIVE PRICES & DATA: World Stocks Currency rates Dow Jones/NASDAQ Nikkei FTSE 100 Debt Hong Kong Dollar LME price overview ($1=7.749 Hong Kong Dollar) Keywords: MARKETS HONGKONG CHINA STOCKS (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.