Market Wrap: Hang Seng rise after Obama wins re-election
Hang Seng gained slightly on Wednesday after Barack Obama gave the market a boost in the last hour of trading in Hong Kong.
“The best is yet to come” for the US, Obama said in his victory speech. His re-election, which came during the market lunch break in Hong Kong, helped the gauge recover morning losses and end above the physiological 22,000, at 22099.85.
“On a more positive note, we believe President Obama will continue to support the Quantitative Easing program, which should be supportive for Asian equity markets given the resulting increased global liquidity and a relatively weak US dollar,” said Andrew Swan, BlackRock’s Head of Asian fundamental equities.
Trading volume jumped to HK$64 billion in Hong Kong trading, more than 20 per cent above the year-to-date average.
But in Shanghai, investors’ sentiment was still sluggish as China is set to kick off the 18th Party Congress, the once-in-a-decade leadership reshuffle conference, on Thursday.
The Shanghai Composite Index dipped 0.27 points, or 0.01 per cent, to close at 2105.73, as brokerage, property and insurance firms retreated.
This Friday, China will release October inflation and activity data, followed by trade figures on Saturday.
Local property developers gained on speculation consistent easing would attract more hot money from overseas to the local housing market.
BYD (1211.HK), the Warren Buffett-backed Chinese automaker, surged as much as 10.63 per cent to finish at 19.36, after mainland media Jiefang Daily said the automaker had won export orders for 6,500 units of its G3 sedans from its Iraq dealer. That is the biggest export order that BYD has gained in history.