Hong Kong’s Hang Seng Index has best day in a month driven by gains in HSBC, China economic data
- Although China reported a fourth straight month of increase in industrial giants’ profits in August, the Shanghai benchmark ended lower
- HSBC shares surge 7.8 per cent to HK$30.4 after Ping An said it had bought HK$305.5 million worth of the bank’s shares on Friday
Hong Kong stocks posted their biggest daily increase in a month on Monday, boosted by optimism over China’s bright economic data in August and progress over a US stimulus plan, while China-listed shares pulled back in cautious trading ahead of a long public holiday.
Meanwhile, the Shanghai Composite swung between gains and losses before ending 0.1 per cent lower at 3,217.53. The Shenzhen Component Index also declined 0.4 per cent, while the ChiNext Index of start-ups listed in Shenzhen dropped 0.8 per cent.
“Hopes for US stimulus package and robust China data auger well, but the resurgence of Covid-19 clouds the view,” said Stephen Innes, chief global market strategist at AxiCorp.
China reported a fourth straight month of increase in the industrial giants’ profits on Sunday. Profits of large firms grew 19.1 per cent in August from the same period last year, though this was slightly slower than the 19.6 per cent increase in July.