Portugal bond sales bodes well for Asian markets; Australian shares rebound as flood fears dissipate
City Index January 13, 2011 8:07 PM
<p>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 […]</p>
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).
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.