Hang Seng Index gains 6.4pc as sentiment improves after surprise rise in home sales
Hong Kong stocks rose the most in two months yesterday after signs of life in the ailing United States economy provided an opportunity for investors to buy back beaten down shares.
The troubled US housing market unexpectedly picked up last month, with a report on Monday showing sales of existing homes rose for the first time since July last year. And JP Morgan Chase sweetened its offer price for Bear Stearns, signalling that some order had been restored to financial markets.
The Hang Seng Index opened 3.48 per cent higher before investors sent it soaring 1,356.3 points or 6.43 per cent to close at 22,464.52. All but two members of the 43 blue-chip benchmark rose, joining an equity rally across Asia.
'It shows how hungry everybody is,' said Francis Lun Sheung-nim, a general manager at Fulbright Securities. 'They've been starving for good news for so long so that when the market rebounds, all hell breaks lose.'
With the Hong Kong market resuming trade after the Easter break, the Hang Seng's gains easily outpaced the regional rally.
'Don't forget that Hong Kong declined much more than everyone else last week so it was playing catch-up,' Mr Lun said.
