Hong Kong shares rebound from 3-week low, Hutchison jumps
Hong Kong shares rebounded off a three-week low on Wednesday, led by Hutchison Whampoa after local media reported the ports-to-telecoms conglomerate may spin off its Watsons health and beauty retail unit through an initial public offering.
Strength in defensive shares pointed at underlying caution, despite broader optimism that the first partial US government shutdown in 17 years will be short-lived and not have a broader impact on the economy.
At midday, the Hang Seng Index, which closed on Monday at its lowest since September 9, was up 1.1 per cent at 23,106.7 points. The China Enterprises Index of the top Chinese listings in Hong Kong climbed 1 per cent.
Flows are still quite cautious ... But I think people expect Washington to come to a form of compromise sooner rather than later
Hong Kong markets were shut on Tuesday for China’s National Day holiday. Those in the mainland will stay closed until next Tuesday.
“Flows are still quite cautious,” said Jackson Wong, vice president for equity sales at Tanrich Securities. “But I think people expect Washington to come to a form of compromise sooner rather than later.”
Chinese Internet giant Tencent Holdings jumped 2.6 per cent, stretching its 2013 gains to more than 67 percent. China Mobile rose 1.4 per cent and Asian insurance giant AIA Group climbed 1.7 per cent.
Gold miners slumped as gold prices hit two-month lows on Wednesday, rattled by large sell orders in New York that pushed prices below US$1,300 (HK$10,081) the session before. Zhaojin Mining sank 3.2 per cent, while Zijin Mining shed 2.7 per cent.