Chinese developers led a rally in Hong Kong stocks as investors pushed the local market benchmark to a two-week high on speculation Beijing will inject stimulus to revive the ailing property market.
The Hang Seng Index rose 1.3 percent to 19,356.82 as of 10.20am local time, adding to a 4.9 percent rally over the past two days. The Tech Index jumped 1.5 percent while the Shanghai Composite Index retreated 0.3 percent.
Longfor Group surged 5.1 percent to HK$17.88 while peers Country Garden jumped 4.1 percent to HK$1.51 and China Resources Land strengthened 6.4 percent to HK$33.50. Alibaba Group paced tech winners, adding 0.8 percent to HK$83.40.
The Hang Seng Index pulled further away from the clutches of bears, after mainland media reports published articles this week to drum up support for Chinese equities despite lingering geopolitical tensions. Sentiment also improved amid speculation Beijing will soon inject stimulus to shore up the economy.
Official reports this week may show more wobbles in the world’s second-largest economy. Exports probably fell 1.3 percent in May from a year earlier, compared with an 8.5 percent gain in April, economists forecast before a Customs bureau report on Wednesday. A report on Friday may show factory-gate prices fell 4.4 percent, after a 3.6 percent drop in April.
Elsewhere, Chongqing Xishan Science and Technology surged 36 percent to 184.50 yuan on the first day of trading in Shanghai. Guangzhou Newlife Material rallied 18 percent to 46.16 yuan on its debut in Shenzhen.
Other major Asian markets were mixed. Japan’s Nikkei 225 climbed 0.3 percent, while South Korea’s Kospi rose 0.5 percent and Australia’s S&P/ASX 200 lost 0.7 percent before a rate decision.
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