Hong Kong stocks closed marginally higher on the last full day's trade before the Lunar New Year break as the decline in the US dollar brought relief to many markets in the region. Brokers said the US dollar's fall - largely over concerns surrounding President Bill Clinton - helped take some pressure off the battered Asian currencies. The Government's decision to spend more to help investors who lost shares in the collapse of CA Pacific Securities also aided the market advance. The Hang Seng Index closed at 8,973.86, having gained 53.66 points, or 0.62 per cent. Turnover rose to $8.97 billion from last Friday's tepid $6.69 billion. BNP PrimeEast Securities sales director Allen Chang said: 'The weaker US dollar led to a stronger Japanese yen and that helped other Asian currencies. 'The Clinton scandal is actually helping to stabilise currencies across the region.' The Hang Seng Index shot higher at the opening, climbing as much as 358.62 points shortly after trading began before running into heavy selling pressure around 9,250. Profit-taking eroded most of those gains within the first hour and the market spent the rest of the day in a relatively tight trading range. Brokers said news the Government was boosting the compensation available to investors who lost money through CA Pacific also helped give the market a boost. Nikko Asset Management fund manager John Lai said: 'The retail market has been weak after the Peregrine crisis and this move should help shore up confidence.' Among the 33 Hang Seng Index constituents, 20 advanced, three closed unchanged and 10 lost value. Cathay Pacific Airways posted one of the best gains, as falling oil prices encouraged investors to return to the stock. Cathay, which has taken a beating over the past six months, closed 7.9 per cent higher at $6.80. Bank of East Asia made strong gains after the company's 1997 results came in line with expectations. The stock rose as much as 8.1 per cent in early trade before closing 3.8 per cent up to $13.40. Utilities posted solid gains, with investors attracted by the defensive quality of their earnings. CLP Holdings added 1.6 per cent to $42.30, and Hongkong Electric gained 1.1 per cent to $27. Looking ahead, brokers see quiet trading in the half-day today as investors adopt a wait-and-see attitude over the Lunar New Year break. Mr Chang said: 'For next week, a lot depends on the direction of the US dollar and the yen.' KEY FIGURES Close: 8,973.86 (+ 53.66) Turnover: $8.97 bln Volume: 2 bln shares Day's high: 9,278.82 Day's low: 8,948.11 Advanced: 291 Declined: 250 Unchanged: 628 Jan futures: 9,057 (+ 67) Feb futures: 8,840 (- 150)
