Hong Kong shares surge on stimulus moves

By DPA,

Hong Kong : The benchmark Hang Seng index surged 8.66 percent Monday to its highest level in seven weeks amid investor confidence of stimulus moves by China and the United States.


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Turnover topped 63.87 billion Hong Kong dollars ($8.19 billion), following Friday’s turnover of 37.3 billion Hong Kong dollars.

Among the biggest gainers was Cosco Pacific, the Chinese ports operator, which surged 22.8 percent to close at 7 Hong Kong dollars.

Local property company Henderson Land closed at 28 Hong Kong dollars, a 16.18 percent increase on the day.

Analysts said market sentiment was driven by investor optimism that China would announce further measures to boost domestic consumption and that a US plan to bailout car giants would succeed.

China announced a four trillion yuan ($586 billion) infrastructure spending package Nov 9 that was intended to increase domestic demand.

US president-elect Barack Obama signalled plans last weekend for the largest investment in public works since the development of the interstate highway system in the 1960s and 1970s.

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