Hong Kong stocks are expected to open higher after the US central bank's overnight decision (Hong Kong time) to extend its bond purchasing plan by US$45 billion a month when an existing programme expires at the end of December. Speculation of the expansion had already pushed the benchmark index to a 16-month high on Wednesday.
Overnight, the Standard & Poor's 500-stock index added 0.64 points, or 0.04 per cent, to close at 1428.48. The Nasdaq Composite lost 8.48 points, or 0.28 per cent, to close at 3,013.81. In London, the FTSE-100 Index added 20.88 points, or 0.35 per cent, to end at 5,945.85.
Property stocks may continue to see strong fund support on speculation that more easing would further inflate asset prices. Cheung Kong (0001.HK ) and Sun Hung Kai Properties (0016.HK ) are worth watching.
Hong Kong Monetary Authority this morning bought another HK$7 billion as cash inflows pushed the local currency to the strong end of the trading band. The Hong Kong dollar has been pegged to the US dollar since 1983 but is allowed to trade in a limited range, with the HKMA intervening when the local unit tests the band.
Gold producers like Zhaojin Mining (2899.HK ) may see a boost after the nation's official said January-October industrial output value of gold production gained 34 per cent from a year earlier.