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| Hong Kong shares led a region-wide rally yesterday as hopes for further spending in the leading economies helped lift sentiment across Asia-Pacific. Markets were cheered by US president-elect Barack Obama's plans to boost spending and also took a cue from Wall Street's last-minute rally on Friday, on hopes that the grim job data in the world's largest economy would prompt further interest rate cuts to stave off a deeper recession. Hong Kong and Chinese shares also benefited from expectations that Chinese economic policymakers, convening to set a broad agenda for the coming year, would focus on specific policy measures to help the economy. The Hang Seng benefited from expectations in both economies and climbed 8.2 per cent to 14,985.92, taking the index to its highest since October 21 and its biggest daily gain since October 31. The sub-index of mainland Chinese shares listed in Hong Kong gained 8.9 per cent to 8,089.50. Blue chips and mainland financials led those gains. China Mobilegained 6.4 per cent to HK$80.35 while HSBC rose 4.4 per cent to HK$85. Construction Bank of China gained 8.8 per cent to HK$4.80, insurer China Life rose 8.8 per cent to HK$23.50 and Industrial & Commercial Bank of China rose 8.1 per cent to HK$4.40. Mainland banks enjoyed an additional boost from a report that business tax on their revenue could be trimmed. The Shanghai Composite index showed a more muted 3.6 per cent gain to 2,090.773, the highest closing level since October 8. Again, financials led the market higher, with China Merchants Bank gaining 8.3 per cent to Rmb14.14, Shanghai Pudong Development Bank gaining 8.8 per cent to Rmb14.77 and Min-sheng Bank rising 4.9 per cent to Rmb4.54. Carmakers also gained in China after Friday's fuel tax reform announcement. Tianjin FAW Xiali Automobile gained 9.3 per cent to Rmb4.71 on the Shenzhen exchange. |
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