US retail sales boost growth hopes in Hong Kong bourse
Friday, 9 July 2010
SINGAPORE, July 8 (Bloomberg): Hong Kong stocks rose, driving the Hang Seng Index higher for the second time in three days, after a trade group said US retail sales climbed and the International Monetary Fund raised its global growth forecast.
Li & Fung Ltd., the world's biggest supplier for retailers including Wal-Mart Stores Inc., advanced 1.9 per cent. HSBC Holdings Plc, Europe's biggest lender by market value, climbed 2.5 per cent on speculation European banks will pass stress tests. Cnooc Ltd, China's biggest offshore oil explorer, gained 1.3 per cent after saying it's in final talks with Tullow Oil Plc to develop oilfields in Uganda.
"It's nice to see better news as the broad economic picture has been pretty bleak," said Tim Leung, who helps manage about $1.5 billion at IG Investment Ltd in Hong Kong. "We are seeing a technical rebound since the market has been a bit oversold."
The Hang Seng Index climbed 1 per cent to close at 20,050.56. The gauge dropped 3.8 per cent last week, halting five straight weeks of gains, as reports on US manufacturing, employment and home sales pointed to slower growth in the second half of the year.
The Hang Seng China Enterprises Index of so-called H shares of Chinese companies increased 0.6 per cent to 11,375.29.
Stocks advanced today after the International Council of Shopping Centers trade group said US retailers' sales probably expanded at an average monthly rate of 4 per cent in the first five months of the retail year that began January 31, the biggest gain since 2006. Separately, the IMF raised its 2010 global growth forecast to 4.6 per cent from an April projection of 4.2 per cent.
Li & Fung, which got about 64 per cent of sales from the US last year, rose 1.9 per cent to HK$35.20. Yue Yuen Industrial (Holdings) Ltd, the supplier of athletic shoes that counts the US as its biggest market, gained 1.2 per cent to HK$24.75.
Li & Fung Ltd., the world's biggest supplier for retailers including Wal-Mart Stores Inc., advanced 1.9 per cent. HSBC Holdings Plc, Europe's biggest lender by market value, climbed 2.5 per cent on speculation European banks will pass stress tests. Cnooc Ltd, China's biggest offshore oil explorer, gained 1.3 per cent after saying it's in final talks with Tullow Oil Plc to develop oilfields in Uganda.
"It's nice to see better news as the broad economic picture has been pretty bleak," said Tim Leung, who helps manage about $1.5 billion at IG Investment Ltd in Hong Kong. "We are seeing a technical rebound since the market has been a bit oversold."
The Hang Seng Index climbed 1 per cent to close at 20,050.56. The gauge dropped 3.8 per cent last week, halting five straight weeks of gains, as reports on US manufacturing, employment and home sales pointed to slower growth in the second half of the year.
The Hang Seng China Enterprises Index of so-called H shares of Chinese companies increased 0.6 per cent to 11,375.29.
Stocks advanced today after the International Council of Shopping Centers trade group said US retailers' sales probably expanded at an average monthly rate of 4 per cent in the first five months of the retail year that began January 31, the biggest gain since 2006. Separately, the IMF raised its 2010 global growth forecast to 4.6 per cent from an April projection of 4.2 per cent.
Li & Fung, which got about 64 per cent of sales from the US last year, rose 1.9 per cent to HK$35.20. Yue Yuen Industrial (Holdings) Ltd, the supplier of athletic shoes that counts the US as its biggest market, gained 1.2 per cent to HK$24.75.