NewHong Kong stocks follow Wall Street higher, while China mired in negative territory

Hong Kong stocks advanced on Tuesday, tracking overnight gains on Wall Street, while mainland stocks were weighed by concerns over China’s escalating probes into alleged market manipulation.

Hong Kong’s Hang Seng Index ended with a 0.9 per cent gain at 22,568.43, breaking a four-day losing streak.

Meanwhile, the Hang Seng China Enterprises Index tacked on 0.4 per cent to close at 10,283.42.

Director of Phillip Securities Louis Wong said strong US markets overnight, coupled with the strength of Tencent and Macau casino stocks, helped push Hong Kong markets higher.

Index heavyweight Tencent Holdings climbed 2 per cent to HK$150.5, after a Wall Street Journal report said Tuesday that the Chinese Internet giant plans to invest $1 billion in the country’s largest on-demand service provider. Tencent Holdings is scheduled to release its third-quarter results next Tuesday. Analysts polled by Bloomberg on average expect the company to record a 25 per cent year-on-year jump in net income.

Gambling stocks advanced further after Macau’s gambling revenues dropped a less-than-expected 28 per cent in October on year, moderating from a 33 per cent slide in the previous month. Galaxy Entertainment jumped 3.8 per cent to HK$27.35, Sands China also rallied 3.8 per cent to HK$28.95, SJM Holdings improved by 3.4 per cent to HK$6.61.