Portugal bond sales bodes well for Asian markets Australian shares rebound as flood fears dissipate

The Hong Kong share market continued its upward trend with the Hang Seng index touching a session high of 24378 before it pulled back to 24247 at midday.

The result of the Portugal bond sales last night was definitely a welcome news to the Hong Kong market. Investors are speculating that the European debt crisis may have been contained already.

Finance stocks, led by HSBC, gained more than 1% to HKD86.45 on the back of easing concerns on European debt. All Chinese banks listed in the Hong Kong exchange gained. China Construction Bank, the second largest lender in China, led the gains rising more than 2% to HKD7.35 before midday.

Oil giant, Petro China gained 1.33% to HKD10.66 on the back of strong oil prices and announcement that its parent company increased profits by 30% last year. Oil refiner Sinopec, also gained 1.28% on the day.

Singapore shares were also in positive territory along with other Asian markets. China ship builder Yangzijiang outperformed the market by gaining nearly 3% after the company won US$415 million worth of contracts.

LIan Beng Group, a local construction company, gained 3.03% after the company doubled its half year net income from 22.7million to 17.5 million compare with a year ago.

In Australia, the local share market rebounded strongly at the open and remained in positive territory today after a few days of being in the red.

Some of the clouds hanging over the market have dissipated. The worry on the European debt crisis seems to have been addressed overnight. We’re also starting to get more clarity on the extent of damages in Queensland and it looks like things may not be as bad as people have feared (earlier).