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Nikkei Markets

MARKET BUZZ: Mainland Companies Lift Hong Kong's HSI To New 10-Year Highs

By Hong Kong Newsroom
Nikkei Markets
HONG KONG (Jan 04) -- Hang Seng rises 0.6% to 30,736.48, highest since October 2007, after upbeat China services data. Index of mainland companies trading in HK adds 1% and Shanghai Composite advances 0.5% after China's services activity grows at quickest pace in three-years last month, according to Caixin/Markit services PMI. Strong reading on services sector follows better-than-expected manufacturing print earlier this week. Analysts, however, say good news on China economy unlikely to last. "We forecast that China's manufacturing sector and overall economy will slow this year, with the environmental crackdown, the effects of prior tightening in monetary policy and less supportive fiscal policy all likely to weigh," Capital Economics says in note. Mainland lenders biggest contributors on Hang Seng China Enterprises Index; China Construction Bank adds 2.2%, Industrial and Commercial Bank of China rises 1.1%. PetroChina rallies 5.1%, pacing advance in energy names following overnight rally in crude oil. Volumes on main board stood at HK$131.8 billion ($16.9 billion), higher than previous 10-day average of HK$92.00 billion. Most other Asian markets also higher after better-than-expected US manufacturing data. Nikkei Asia300 index of companies outside Japan rises 0.5%.
- By Hong Kong Newsroom; hkeditorial@nikkeinewsrise.com; +852 3960 5102
- Edited by Nimesh Vora
- Send Feedback to feedback@nikkeinewsrise.com
- Copyright (c) 2018 Nikkei NewsRise Asia Pte Ltd.

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