Hang Seng closes on three-week high note
Source: Bloomberg News |
August 2, 2011, Tuesday
|
Print Edition
Print Edition
HONG Kong stocks rose yesterday, pushing the Hang Seng Index to its highest closing price in three weeks, after US President Barack Obama said congressional leaders have reached agreement to raise the US debt ceiling and cut the federal deficit, boosting the prospects for Asian exports.
Li & Fung, the largest supplier of toys and clothes to retailers, including Target and Wal-Mart Stores, climbed 2.2 percent. PetroChina rose 1.6 percent and Aluminum Corp of China advanced 0.9 percent as oil and metal prices rallied in New York. HSBC, a lender that gets more than 20 percent of its revenue from North America, gained 0.5 percent.
The Hang Seng Index increased 1 percent to close at 22,663.37, the highest close since July 8. All but three stocks in the index advanced. The benchmark fell 0.6 percent on July 29 after the US Congress delayed a vote on a plan to raise the borrowing limit, pushing the world's biggest economy to the brink of defaulting on its sovereign debt.
Sydney-based Shane Oliver, head of investment strategy at AMP Capital Investors, said the bounce in stock markets is because "fears of a partial US government shutdown or default have been the main worry for investors recently" given the potential impact on Asian exports. He added: "Nervousness is likely to remain high as the US debt deal will still have to pass both houses of Congress."
The Hang Seng China Enterprises Index, which tracks so-called H-shares, gained 1.4 percent to 12,540.4.
Obama announced Republican and Democrat leaders in the House and Senate had reached a tentative agreement to raise the debt ceiling ahead of an August 2 default deadline.
He said: "The leaders of both parties in both chambers have reached an agreement that will reduce the deficit and avoid default." A vote on raising the lending limit was due to take place imminently in both houses of Congress to avoid breaching today's default deadline.
Li & Fung, the largest supplier of toys and clothes to retailers, including Target and Wal-Mart Stores, climbed 2.2 percent. PetroChina rose 1.6 percent and Aluminum Corp of China advanced 0.9 percent as oil and metal prices rallied in New York. HSBC, a lender that gets more than 20 percent of its revenue from North America, gained 0.5 percent.
The Hang Seng Index increased 1 percent to close at 22,663.37, the highest close since July 8. All but three stocks in the index advanced. The benchmark fell 0.6 percent on July 29 after the US Congress delayed a vote on a plan to raise the borrowing limit, pushing the world's biggest economy to the brink of defaulting on its sovereign debt.
Sydney-based Shane Oliver, head of investment strategy at AMP Capital Investors, said the bounce in stock markets is because "fears of a partial US government shutdown or default have been the main worry for investors recently" given the potential impact on Asian exports. He added: "Nervousness is likely to remain high as the US debt deal will still have to pass both houses of Congress."
The Hang Seng China Enterprises Index, which tracks so-called H-shares, gained 1.4 percent to 12,540.4.
Obama announced Republican and Democrat leaders in the House and Senate had reached a tentative agreement to raise the debt ceiling ahead of an August 2 default deadline.
He said: "The leaders of both parties in both chambers have reached an agreement that will reduce the deficit and avoid default." A vote on raising the lending limit was due to take place imminently in both houses of Congress to avoid breaching today's default deadline.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
