Market Wrap: Hang Seng up from 3-week low on China data
Hong Kong stocks rose on Monday, rebounding from an over-three-week-low, as China released better-than-expected export data which added proof that the economy is stabilising.
China’s exports beat forecasts with an 11.6 per cent year-on-year increase, the fastest pace of growth seen in 5 months. The data is another “evidence of recovery” for
China’s economy, according Lu Ting, China Economist with Bank of America Merrill Lynch.
“The strong export data lend further support to our above-consensus GDP growth call,” he said, “We believe China’s economic growth has truly bottomed out.”
The benchmark Hang Seng Index added 45.92 points, or 0.21 per cent, to finish at 21,430.30. Turnover fell to HK$45.56 billion, the lowest since October 15.
Local property developers rebounded from earlier losses after data from Centaline Property Agency showed that second-hand home transaction surged 40 per cent during the past week from a week earlier.
HSBC (0005.HK) shed 0.20 per cent to finish at HK$74.25. The stocks fell for the third day after it said profit before tax at its Indonesia unit Bank Ekonomi fell 26 per cent from a year earlier during the first nine months ended September 30. Meanwhile, investors sold the shares also on a British media report that said it had set up accounts in the tax haven of Jersey for alleged criminals.
Elsewhere, Chinese automakers extended rally following last week’s media report that said Shanghai municipal government announced new subsidy for green cars. BYD (1121.HK) added 5.53 per cent to finish at HK$20.60.