Hong Kong stocks set for best week in 4 months

A man looks at an electronic stock board of a securities firm in Tokyo. AP Photo/Koji Sasahara

A man looks at an electronic stock board of a securities firm in Tokyo. AP Photo/Koji Sasahara

Published Jan 6, 2017

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Shanghai - Hong Kong stocks extended

yesterday's sharp gains on Friday morning, set to have their

best week in four months, as weakness in the US currency and

low treasury yields helped ease fears of capital outflow from

emerging markets.

The benchmark Hang Seng index added 0.4 percent, to

22,546.76 points, while the Hong Kong China Enterprises Index

gained 0.2 percent, to 9,616.88 points.

Barring a correction, the benchmark index was set to have

its best weekly gain since Sep. 9, up around 2.5 percent.

The dollar index, which tracks the greenback against

six major world currencies, hit a low of 101.37 in early trade,

around 2.4 percent down from a intraday high set on Tuesday.

Most sectors in Hong Kong gained modestly, with tech stocks

the best performer, up more than 1 percent.

China stocks pulled back in early trade, but Shanghai shares

were poised to break a five-week losing streak as the market

carries solid momentum into 2017 amid signs of economic

stabilisation.

The Shanghai Composite Index lost 0.1 percent, to

3,161.77 points, putting on nearly 1.9 percent so far this week.

The blue-chip CSI300 index fell 0.3 percent, to

3,357.50 points.

"Investors are likely to stay lukewarm on the stock market

until the end of Lunar New year when sentiment is expected to

improve," said Cao Xuefeng, head of research at Huaxi

Securities.

He noted that Friday's bearish sentiment on the mainland, as

the market corrects, was partially offset by strength among

energy majors and Beijing's efforts to defend the yuan.

China's central bank set the official yuan midpoint at

6.8668 per dollar prior to market opening on Friday, the

strongest fixing in a month, sparking speculation that Beijing

wants a firm grip on the currency ahead of U.S. president-elect

Donald Trump's inauguration later this month.

Market response towards the finance ministry's resolution to

study new measures to cut taxes and reduce the overall cost

burden on firms was muted.

Sector performance on the mainland was mixed.

Property stocks retreated despite media reports that China's

average home prices were forecast to rise 4.1 percent in 2017.

REUTERS

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