Yahoo Finance Hong Kong stocks jump by most in 3 weeks as Alibaba, Tencent gain on economic data boost
Hong Kong stocks rose by the most in over three weeks after a private report showed the manufacturing sector in mainland China expanded more than expected last month, in contrast with an unexpected contraction in official data.
The Hang Seng Index jumped 1.9 per cent to 18,415.14 at 3.10pm local time, the biggest advance since May 10. The Tech Index soared 2.4 per cent while the Shanghai Composite Index declined 0.3 per cent.
All but nine out of the 82 index members gained. Tencent jumped 4.3 per cent to HK$375.20, Alibaba appreciated 2.7 per cent to HK$76.90 and JD.com added 2.4 per cent to HK$116.60. EV maker BYD jumped 5.8 per cent to to HK$232.40 and rival Li Auto advanced 5.4 per cent to HK$82.40 after top players reported sales surge last month as promotional campaigns lured consumers.
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Caixin manufacturing purchasing managers' index (PMI) rose to 51.7 last month from 51.4 in April, marking the fourth consecutive month of accelerated growth and the fastest pace in two years, surpassing analysts' forecasts of 51.6, according to economists surveyed by Bloomberg.
That helped ease some concerns about the economic recovery, with Friday's official data release showing Chinese manufacturing activity contracted last month, contrary to analyst expectations.
People walk past signage for Hong Kong Exchanges & Clearing Ltd. (HKEX) displayed at the Exchange Square complex in Central. Photo: Sam Tsang alt=People walk past signage for Hong Kong Exchanges & Clearing Ltd. (HKEX) displayed at the Exchange Square complex in Central. Photo: Sam Tsang>
Ahead of today's rise, the Hang Seng Index had declined for two straight weeks on profit-booking sales after patchy earnings and an erratic economic recovery rattled investors.
"The swings of the past month were all part of the market correcting excessive pessimistic and optimistic expectations," Kevin Liu, a strategist at CICC, said in a note on Sunday. "We believe that as risk appetite has been restored, while further upside potential in the market may require additional catalysts to emerge."
In new issues, UboT Holding, which operates in the semiconductor industry and is the first debutant on the Growth Enterprise Market (GEM) in three years, jumped 8 per cent from its IPO price to HK$0.54 per share on its first day of trading on Monday.
Elsewhere, GenScript Biotechnology sank as much as 26 after the company said it's "not under the control of any government" after the US asked the FBI to probe its ties with Chinese authorities.
Other major Asian markets also posted gains. Japan's Nikkei 225 added 1.1 per cent, Australia's S&P/ASX 200 jumped 0.8 per cent and South Korea's Kospi surged 1.7 per cent.
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