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Index decline checked

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Hong Kong stocks posted their first gains in four days yesterday as investors picked up finance issues mauled by Tuesday's 3.67 per cent plunge.

Trading was light, with many players on the sidelines amid continuing uncertainty over the direction of US interest rates.

Brokers said investors had taken some comfort from the Dow's 27.57-point advance overnight but doubts persisted about the short-term outlook.

Property counters remained subdued.

May Lam, managing director at MeesPierson Securities, said: 'It's a very quiet day. I do not think people are comfortable about the rally on Wall Street. There are still worries about further rises in interest rates.' The Hang Seng Index firmed 62.13 points to 12,136.32. It plunged 460.13 points on Tuesday on the back of steep losses in US equity prices on either side of the Easter weekend.

Turnover was $7.05 billion, down from Tuesday's $9.05 billion.

Terry Cheung, associate director at Yamaichi International, said: 'It is still quite a mixed feeling [on interest rates].' The gain in the Dow Jones Industrial Average was fuelled by the release of last month's prices-paid figures, a measure of inflation, which showed that price growth was under control. The long-bond yield dipped three basis points to 7.06 per cent, helping equities to firm.

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