Hong Kong stocks climb most in six months on upbeat China export data; Macau casino operators hit a daily hot streak
- ‘The trade data lent support to the market and stirred some buying sentiment,’ says Wang Zheng of Jingxi Investment Management
- Resilience of stocks will be tested by fresh key data coming out later this week in China
Hong Kong and mainland stocks rose on Monday, with the city’s benchmark posting its biggest gain in six months, after official data showed China exports topped estimates.
The Hang Seng Index rallied 2.3 per cent to 27,578.64 for its biggest gain since December 3. China’s Shanghai Composite Index added 0.9 per cent to 2,852.13, closing higher for the first time in seven days. Both markets were shut on Friday for a public holiday.
Investors got a respite from a report released by the customs office in the morning showing overseas shipments unexpectedly increased 1.1 per cent in May in US dollar terms. That greatly exceeded the estimate of a 3.9 per cent drop. China’s trade surplus also topped the projection, while imports trailed.
“The trade data lent support to the market and stirred some buying sentiment,” said Wang Zheng, chief investment officer at Jingxi Investment Management in Shanghai. “But a further significant gain on the market seems unlikely as the trade issue with the US remains unsolved and other key economic data will be out soon to test the strength of the market.”
The resilience of stocks will be soon put to further test, with the statistics bureau scheduled later this week to release a set of key May economic data on retail sales, fixed-asset investment and industrial output. Goldman Sachs predicts a moderation in industrial production, but a rebound in retail sales.