HK stocks break 5-day losing streak, led by Chinese banks
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Hong Kong stocks on Tuesday recovered after five consecutive sessions of loss, led by Chinese mainland's banks, which have underperformed the broader market in recent days amid concerns of further monetary tightening.
The blue-chip Hang Seng Index opened 21 points higher, eased to the day low of 21,335.60 in the morning, and rallied to the day high of 21,681.69 in the afternoon. The index closed at 21,677.98, up 217.97 points, or 1.0 percent.
Turnover rose to 73.46 billion HK dollars (about 9.47 billion U. S. dollars) from 69.04 billion HK dollars (about 8.90 billion U.S. dollars).
Analysts said they don't expect further strong gains in the benchmark index in the near-term as the market awaits companies' full-year earnings results. They said the index will likely trade in a 21,000-22,000 range for the rest of the week.
Three of the major sub-indices gained ground. The finance sub- index added most at 1.51 percent, followed by the properties at 1. 12 percent and the commerce and industry at 0.52 percent. The utilities sub-index slid 0.66 percent.
Hong Kong-listed Chinese mainland's banks rose as concerns about monetary tightening in China eased after the banking regulator said Monday banks will always be required to base their lending on real demand and to properly manage the pace and quality of lending.
China Construction Bank jumped 4.1 percent to 6.42 HK dollars. Bank of China gained 4.1 percent to 4.09 HK dollars and ICBC ended 3.1 percent up at 6.05 HK dollars.
Chinese mainland's insurance stocks also recovered. China Life rose 0.95 percent, while Ping An gained 0.82 percent, and PICC P&C surged 5.24 percent.
Among other blue-chips, Heavyweight HSBC Holdings lost 0.56 percent. HKEX rose 0.61 percent.
With New York oil futures rallying, CNOOC gained 1.5 percent. PetroChina rose 1.7 percent. Sinopec Corp added 1.68 percent.
The Civil Aviation Administration of China released satisfactory passenger and cargo and mail volume in December 2009. Aviation and related stock Air China went up 1.23 percent, while China South Air up 2.16 percent, and China East Air up 0.69 per cent.
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