x Abu Dhabi, UAEThursday 27 July 2017

China, Hong Kong stocks rise as emerging markets in Asia gain again

Emerging-market stocks rose for a third day, the longest streak in six weeks, as Chinese banks and developers rallied in Hong Kong after a three-day holiday.

The Hong Kong Stock Exchange started the first day of trading after the Chinese Lunar New Year holidays on a positive note. Alex Hofford / EPA
The Hong Kong Stock Exchange started the first day of trading after the Chinese Lunar New Year holidays on a positive note. Alex Hofford / EPA

Emerging-market stocks rose for a third day, the longest streak in six weeks, as Chinese banks and developers rallied in Hong Kong after a three-day holiday.

China Resources Land and China Minsheng Banking climbed more than 5 per cent. Bumi Resources surged the most since May 2010 in Jakarta on expectations that a shareholder dispute will be resolved. Universal Robina, the Philippines' largest snack-food maker, rose to a record after MSCI raised the company's index weighting.

The MSCI Emerging Markets Index rose 0.2 per cent to 1,066.91 points in late afternoon trading in Hong Kong. The gauge's three-day advance is the longest winning streak since January 3.

Data showing Chinese tourists to Macau surged over the Lunar New Year holiday boosted confidence in China's consumption outlook. Indian inflation slowed to a more than three-year low last month, the government reported.

"China is a good cyclical story - consumption, retail sales and manufacturing are improving," said Julian Tarrobago at Kim Eng Asset Management in Manila. "Europe will still likely be in a recession but that is an improvement because investors before were just looking at sovereign-default scenarios."

The Hang Seng China Enterprises Index of mainland companies listed in Hong Kong jumped 1.4 per cent, the most since January 18, as trading resumed following new year holidays. China and Taiwan are shut for the week. The Jakarta Composite Index rose 0.5 per cent to a record. The BSE India Sensitive Index, or Sensex, fell 0.2 per cent.

The MSCI EMI has risen 1.1 per cent this year, trailing a 5.6 per cent gain by the MSCI World Index of developed nations.

A gauge of financial stocks in the MSCI EMI rose 0.5 per cent, the most among 10 industry groups. China Resources, a state-owned developer, rose 4.5 per cent. China Minsheng Bank, the nation's first privately-owned lender, climbed 5.8 per cent.

 

* Bloomberg News