HK equities gain on optimism for a budget deal in the U.S.

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© scanpix/reuters
Hong Kong shares gained ending at their 16-month highs on speculation that U.S. lawmakers will reach a deal to halt the so called fiscal cliff. Many HK shares inched higher amid foreign investors growing optimism on Chinese economy. 

The Hang Seng index inched 0.8% higher to 22,503.35 with gains spread across several sectors. The gauge is 22% up this year. All but one sector edged higher within the index with Consumer Services, Basic Materials and Financials sectors performing the best by adding 1.70%, 1.45% and 1.10%, respectively. The only sector that dropped was Utilities, which have seen high interest this year on their relative safety, since investors turned to riskier sectors. In Hong Kong property companies attracted buyers, therefore China Overseas Land & Investment increased 2.8%. In addition, casino stocks rallied, since investors have brisk earnings growth. Sands China added 2.91%, with their shares surging 52% year-to-date and set to gain for the third consecutive year. Meanwhile, Citic Pacific gained the most by rallying 3.21%, whereas HKEX lost the most with a 1.63% decline. Noodles and beverage maker Tingyi Holdings erased 1.1% as Investors switched to riskier investments.


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