And in Hong Kong too.
Stan
sg.biz.yahoo.com
Friday January 4, 5:10 PM
HK stocks end sharply up led by tech, properties
By Azhar Sukri
HONG KONG, Jan 4 (Reuters) - Hong Kong stocks ended sharply higher on Friday led by technology issues like China's top personal computer maker Legend Holdings <0992.HK> on growing hopes for a global revival in consumer demand this year.
The benchmark Hang Seng Index <.HSI> of 33 blue chip stocks gained 2.44 percent, or 278.63 points, to 11,702.15. The index is up 2.68 percent since the start of the new year, but is still underperforming several major regional markets like South Korea and Singapore.
Analysts said the index is likely to encounter stiff resistance at the psychologically important 12,000 level in the near term.
Turnover stood at HK$7.44 billion (US$954 million), but much higher than the HK$4.79 billion on Thursday, and the HK$6.12 billion average turnover over the last 20 trading days.
"January should be a good month for equities as the consensus in the market seems to be turning positive earlier than expected," said Tina So, Hong Kong-based fund director at Schroders Investment Management, which manages US$170 billion globally.
Legend Holdings climbed 5.62 percent to HK$4.225, tracking a 3.29 percent rise on the U.S. tech-heavy Nasdaq composite index
<.IXIC>. The stock fell nearly 19 percent last year amid the global slowdown in the tech sector.
Investors snapped up U.S. computer chip stocks following reports of rising sales and higher prices in the sector, on hopes that they would be the first to recover in an economic rebound.
The rise in the Nasdaq also lent support to telecoms plays listed in Hong Kong like Chinese cellular carriers China Mobile
<0941.HK> and China Unicom <0762.HK>.
China Mobile, the second largest stock on the Hong Kong bourse by market capitalisation, climbed 2.57 percent to HK$27.90 adding 47 points to the index. Its lone, smaller rival China Unicom was up 2.3 percent at HK$8.90.
Hopes for a swift recovery in the U.S. economy boosted shares of blue chip Hong Kong exporters to the United States, with micro motor maker Johnson Electric <0179.HK> the top blue chip gainer, rising 6.67 percent to HK$8.80.
Global banking giant HSBC Holdings <0005.HK> also sent the index higher, gaining 2.99 percent to HK$94.75, despite Argentina formally defaulting on some of its US$141 billion public debt on Thursday.
"I don't think this will have too much of an impact on HSBC as it has been reducing its exposure in Argentina in the past few years," said Adrian Ngan, head of equity research at BNP Paribas Peregrine.
HSBC, the largest stock on the Hong Kong bourse, derives about three percent of its pre-tax profits from Latin America.
Selected property stocks got a boost from the better overall market sentiment and hopes that real estate prices have bottomed out following four years of stagnation.
Developers Sino Land <0083.HK> and Henderson Land <0012.HK> were among the top blue chip gainers, rising 4.88 percent and 4.36 percent, respectively.
Leading Hong Kong developer Cheung Kong (Singapore: CKGH.SI - news) (Holdings) <0001.HK> said late on Thursday it has sold 120 units in its Victoria Towers residential development for about HK$756 million since Christmas, slightly ahead of some analysts expectations.
"Despite rising property prices in neighbouring parts of China, Hong Kong property will always retain its relative advantage in terms of Hong Kong's business dynamics," Schroders' So said.
Cheung Kong shares ended up 1.88 percent at HK$81.50.
(US$=HK$7.8)
(With additional reporting by Vicki Kwong. Hong Kong Newsroom
+852-2843-6367, Fax +852-2845-0636 azhar.sukri@reuters.com))
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