Hong Kong Recovers 2.4%

123jump.com Staff
17 Jan, 2008
New York City

Hong Kong stocks rebounded after four days losses. Hang Seng Index added 2.7% or 664.13 or 25,114.98. China asked banks to increase the reserve ratio to 15% from 14.5% effetive of January 25. HSBC rebounded after declining for six days in a row. Mobile phone operator China Mobile jumped 3.4% to HK$122.5, while China Life edged up 6.1% to HK$35.5.

[R]6:00AM New York, 6:00PM Hong Kong - Hong Kong stocks closed up 2.7% as investors returned.[/R]

In Hong Kong trading Hang Seng Index jumped 2.7% or 664.13 to 25,114.98, largest gain in thirty trading days, while the China Enterprises index of H shares, or Hong Kong-listed shares in mainland companies, gained 3.3% or 465.29 to 14,481.41.

Daily turnover on the main-board was at HK$138.3 billion compared to HK$145.1 billion yesterday.

Morgan Stanley today raised its recommendation on the Hong Kong listed stocks from “cautious” to “inline” after saying the near term downside is limited.

The People’s Bank of China announced on its Web site yesterday that commercial banks will be required to keep 15% of their deposit from the previous 14.5% effective January 25th as part of tightening measures to curb inflation and economic overheating.

The Standard news online reported today Hutchison Telecommunications Limited said yesterday it will book a HK$3.85 billion non-cash impairment charge in 2007 against the mobile business in Thailand, causing it to report an operating loss for 2007.

Hutchison also added that a deferred tax credit of HK$421million relating to the Thailand impairment charge will also be realized in the 2007 results.

Merrill Lynch said in a report Beijing has also added instant noodles, edible oil and milk products for close monitoring of price increases as part of efforts to put a lid on inflation.

Milk processor China Mengniu Dairy Co Limited fell 8.5% to HK$22.70 in heavy trade.

HSBC Holdings gained 3.5% to HK$119 after declines of six days in a row. The Hong Kong Clearing Exchange climbed 4.4% to HK$179.50.

Mobile phone operator China Mobile jumped 3.4% to HK$122.5, while China Life edged up 6.1% to HK$35.5.

Export oriented Esprit Holdings surged 9.7% to HK$95.1.


[R]5:00AM New York, 7:00PM Tokyo - Tokyo rebounds 2.07% after four days of decline.[/R]

Stocks in Japan gained on bargain hunting after the Nikkei 225 index fell below 14,000.

In Tokyo trading Nikkei 225 reversed a four day 7.5% slump to close up 2.07% or 278.94 to 13,783, while the broader Topix Index soared 27.21 to 1,329.58.

In the first section of the Tokyo Stock Exchange 11.7 billion shares valued at 1.3 trillion yen changed hands and in the second section 365.8 million shares worth 4.2 billion yen were traded.

Of the Nikkei 225 stocks 184 gained, 35 declined, and 6 were unchanged.

Kyodo news online reported today that the Bank of Japan said yesterday in its quarterly survey an increasing number of consumers are losing confidence in the economy as wage increases fail to rise with the inflation.

The U.S. Federal Reserve Board said yesterday in a statement it had sanctioned Japanese online bank eBank Corporation’s application to set up a office in San Francisco.

The company will explore development of technology for Internet banking and invest in the U.S.

Bloomberg news reported today that according to Morgan Stanley prices the risk of Japanese companies defaulting on their debt rose to a record today. The Markit iTraxx Japan Series 8 Index rose by 2 basis points to 56.5 basis points.

Kyodo news also reported today that Nippon Paper Group President Masatomo Nakamura said he will resign after paper and pulp makers said they used less than the required volume of recycled paper in its products since 1992.

Of the Nikkei 225 index shares Shimizu Corporation led advancers with a rise of 8.8% followed by rises in Sumco Corporation of 8.48%, in Fanuc Limited of 8.43%, in Sekusui House of 8.30%, and in Taisei Corporation of 7.96%.

Realty stocks gained on Nikkei news reports that January construction data will show indications for a rebound in housing market. Mitsubishi Estate Company rose 6.99% and Mitsui Fudosan jumped 6.23%.

Exporters advanced after yen weakened to 107.12 from 105.92 yesterday against the dollar. Sony Corporation rose 2.72%, Toyota Motor Corporation soared 3.01% and Honda Motor Corporation climbed 3.87%.

Sharp gained after Goldman Sachs increased its recommendation on the stock to “buy” from “hold” on expectations that the demand for flat display panels will increase.

The company has also agreed to sell 700,000 display panels this year to high–definition TV maker Syntax-Brillian.

J Front Retailing led declining Nikkei 225 stocks with a drop of 5.15% followed by losses in Kao Corporation of 4.97%, in Daiichi Sankyo of 3.94%, in Toyota Tsuho of 3.63%, and in Daiwa Securities Group of 2.93%.

Retail stocks declined after the Bank of Japan said the consumer confidence in the economy had plummeted.

Paper and pulp companies fell after Nippon Paper Group President Masatomo Nakamura said he will resign. Nippon Paper Group shed 2.93%, Hokuetsu slumped 1.93%, and Oji Paper Group declined 1.80%.

The Japan Times reported today All Nippon Airways Company will hike regional airfares by 9% or 2,100 yen on average starting on April 1 to cover rising fuel costs.

Government is considering raising the price of wheat sold to domestic floor millers by 30% from April. Yamazaki Baking fell sharply after the talks of price hike.

In Tokyo Nikkei 225 Index closed higher 278.94 or 2.07% to 13,783.45, in Hong Kong Hang Seng index increased 664.13 or 2.72% closed to 25,114.98, in Australia ASX 200 index lower 13.60 or 0.23% to close 5,796.10.

In South Korea Kospi Index increased 18.58 or 1.09% to close at 1,723.55, in Thailand SET index closed higher 17.45 or 2.26% to 791.25, and Indonesia JSE Index edged increased 56.97 or 2.20% to 2,649.28. Sensex index in India decreased 167.29 or 0.84% to 19,700.82.