BYD, Ping An and China Life Insurance reported improved earnings, giving the market a shot in the arm amid recent concerns about recovery outlook
Five of China’s biggest banks are due to report later today, while HSBC will release its results on May 2
Hong Kong stocks rose for a third day after a surge in earnings from some of China’s biggest companies bolstered confidence in the nation’s economic recovery outlook. Ping An Insurance, Alibaba Group and HSBC led the charge.
The Hang Seng Index gained 0.8 per cent to 19995.56 at 11.08am local time, looking to end above the 20,000-level for the first time this week. The Tech Index advanced 1.6 per cent while the Shanghai Composite Index added 0.6 per cent. China’s markets will close for a holiday on Monday.
Ping An jumped 1.8 per cent to HK$57.20 while Alibaba strengthened 1.1 per cent to HK$82.70 and HSBC climbed 0.4 per cent to HK$56.50. BYD led carmakers higher with a 0.8 per cent rise to HK$237.80, while Xpeng rose 3.8 per cent to HK$37.95.
Profits at BYD, the nation’s top-selling car producer, jumped more than 400 per cent in the first quarter from a year earlier, while Ping An’s earnings increased 49 per cent over the corresponding periods, according to filings this week.
The report cards may come as a relief to the local market, which was still headed for a second week of losses and its first back-to-back decline since February. Earnings misses outnumbered hits by almost three to one in mainland China, before this week’s report cards, according to Bank of America.
China’s biggest lenders including ICBC, Construction Bank and Bank of China logged 0.3 per cent to 1 per cent increase, before their report cards later today. HSBC is due to report on May 2, after city rival Standard Chartered showed better earnings this week.
Elsewhere, major Asian markets traded higher. The Nikkei 225 in Japan increased 0.7 per cent and the S&P/ASX 200 in Australia advanced 0.2 per cent, while the Kospi in South Korea added 0.2 per cent.
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