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Optimists' return fuels positive showing on HSI

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Strong yen, capital hopes and US industrial output data revitalise HK after a long run of poor finishes

A stronger Japanese yen helped lift sluggish Hong Kong stocks yesterday, along with other Asian markets, on hopes possible Asian currency appreciations may attract capital flows back to the region.

Last Friday's rebound on Wall Street and stronger than expected industrial output data from the United States also fuelled optimism, contributing to a 126.87 point, or 0.94 per cent, rally in the blue-chip index - its biggest rebound since December 20.

The benchmark Hang Seng Index opened lower at 13,528.11 points but quickly climbed to an intraday high of 13,636.77 before it narrowed the gain to finish at 13,621.65.

The yen spot rate strengthened to 101.68 to the US dollar yesterday, compared with a previous closing of 102.05 yen and 104.81 yen a week ago.

Most key Asian markets, such as those in Indonesia, South Korea, Malaysia, the Philippines and Taiwan, gained between 1 per cent and 2 per cent yesterday.

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