Hong Kong shares end 1.33% higher

Written By Unknown on Jumat, 02 November 2012 | 16.41

HONG Kong stocks climbed 1.33 per cent to a 15-month high on Friday as a strong set of US economic data added to confidence after the previous day's Chinese manufacturing figures.

The Hang Seng Index gained 289.46 points to 22,111.33, its highest since August 2, 2011, on turnover of HK$70.12 billion ($A8.74 billion).

"The (market's) direction looks to be quite clear and points to one way - up," Mark To, head of research at Wing Fung Financial, said.

The advance was in line with a regional rally, which came after Wall Street surged thanks to a bright batch of indicators that suggest the economy is gaining strength.

The US Conference Board index of consumer confidence for October rose to a better than forecast 72.2 in October, from a revised 68.4 in September, pointing to a pick-up in the crucial manufacturing sector.

Also, the Labor Department said weekly jobless claims continued their decline, falling a modest 9,000 to 363,000 last week - below the four-week moving trend of 367,250.

Adding to confidence was news auto sales continued to climb in October.

Meanwhile the Institute for Supply Management said its purchasing managers index (PMI) for the industrial sector rose to 51.7 from September's 51.5 reading. Anything above 50 points to growth.

The manufacturing figures followed a similar trend in China, where the official PMI swung back above 50 for the first time in three months, while a separate one by HSBC also showed an improvement, raising hopes for the world's number two economy.

There were also signs of life in PMIs from India, Indonesia, Taiwan and South Korea.

Gaming giant Sands China surged 6.3 per cent to HK$31.90 as revenue in Macau hit an all-time monthly high of $3.5 billion in October.

Fellow casino firm Galaxy Entertainment leapt 7.6 per cent to HK$29.05 and SJM Holdings closed 6.1 per cent up at HK$18.06.

Chinese shares closed 0.60 per cent up, with the Shanghai Composite Index rising 12.62 points to 2,117.05 on turnover of 55.9 billion yuan ($A8.69 billion).

The index is up 2.46 per cent for the week.

"There are some nascent improvements in economic fundamentals in China ... so that's likely to support sentiment for a while," Duan Wenyuan, an analyst at Soochow Securities, told Dow Jones Newswires.

Gree Real Estate surged by its 10 per cent daily limit to 6.36 yuan, Vantone Real Estate jumped 3.76 per cent to 3.59 yuan and Poly Real Estate rose 1.64 perc ent to 11.79 yuan.

China Communications Construction rose 2.61 per cent to 4.71 yuan while China Railway Construction gained 2.35 per cent to 5.22 yuan.


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