HONG KONG - Hong Kong blue chips rose 0.6 percent on Tuesday morning as
investors saw value in stocks like China Mobile Ltd. after recent sharp falls.
Weak commodity prices, however, continued to knock resource shares like
Jiangxi Copper, although the pressure had eased somewhat as oil and metal prices
found support.
The benchmark Hang Seng index was up nearly 100 points at 17,046.13 by
midsession, erasing opening losses. The resource-heavy China Enterprises index
of H shares, or Hong Kong-listed shares in mainland companies, fell 0.4 percent
to 6,841.85.
Turnover was HK$15.4 billion (US$2.0 billion), down from Monday morning's
HK$16.6 billion.
"We have bottom fishing, and some people think that commodity prices should
stabilise around current levels," said Jackson Wong, investment manager at
Tanrich Securities.
"Sentiment is still affected by other Asian markets, so when you see Tokyo
reversing its losses, people see funds coming back to Asian markets."
Japan's Nikkei was flat as of 0419 GMT after hitting one-month lows earlier.
Cellular operator China Mobile, the biggest boost to the Hang Seng index,
ended the morning up 1.3 percent at HK$51.4.
Hong Kong's top lender HSBC Holdings Plc. rose 0.7 percent to HK$139.
Resource shares slid further, with gold miner Zijin Mining Co. Ltd. down 1.6
percent at HK$3.66. Lingbao Gold slid 2.5 percent to HK$6.53.
China's top zinc producer, Hunan Nonferrous Metals Corp. Ltd., tumbled 3
percent to HK$2.93.
Jiangxi Copper Co. Ltd. slumped 4 percent to HK$7.21.
Macau-focused gaming company Melco International Development Ltd. plummeted
nearly 6 percent to HK$17.3 in resumed trade on Tuesday and after it said the
Hong Kong stock exchange had ruled against its proposal to list shares of a
joint venture in the United States.
Melco, which has partnered with Australian media
and casino group Publishing and Broadcasting Ltd. to develop Macau casinos, said it
would appeal against the decision, which it learned about on Friday.
Mainland automakers were boosted by China's passenger vehicles sales for
August, which rose 13.6 percent month-on-month, the Daiwa Institute of Research
reported.
Denway Motors climbed 4.2 percent to HK$2.74 in heavy trade and Geely
Automobile Holdings Ltd. surged 3.7 percent to HK$0.85.
(US$1=HK$7.8)
