Hong Kong stocks rose in early trade after strong US payroll data allayed fears of a recession although trade remained watchful ahead of a host of economic data from the world’s second largest economy later in the week.
The Hang Seng Index increased 0.3 percent to 20,104.70 as of 10.05am local time. The Tech Index added 0.4 percent while the Shanghai Composite Index jumped 0.6 per cent.
Alibaba Group added 0.8 percent to HK$82.30, Baidu gained 1.4 percent to HK$121.40 and Meituan rose 0.6 percent to HK$136.40. BYD jumped 2 percent to HK$239.80 while peer Geely Auto surged 2.9 percent HK$9.94.
“Hong Kong stocks are relatively cheap now after the recent correction, and investors should take advantage of the market volatility to buy the dip,” Ping An Securities analyst Wei Wei wrote in a note on Sunday.
Mainland funds bought HK$250 million (US$ million) worth of Hong Kong-listed stocks through the Stock Connect so far on Monday, adding to the HK$1.6 billion inflow last week.
Two stocks debuted on Monday. Hangzhou Gisway Information surged 21 percent to 45.62 yuan on its first day of trading in Shenzhen, while Beijing Luzhu Biotechnology crashed 9.5 percent to HK$29.70 in Hong Kong.
Investors are bracing for a batch of Chinese economic indicators later in the week with trade, lending and money supply figures for April due on Tuesday, and inflation data expected on Thursday.
The rest of the region saw a mixed trend on Monday. The Kospi in South Korea jumped 0.9 percent and the S&P/ASX 200 in Australia added 0.7 percent, while the Nikkei 225 in Japan lost 0.6 percent as trade resumed after the holiday break.
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