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Hang Seng Index logs second weekly advance on earnings outlook as China funds step up purchases
- Hang Seng Index capped a second week of advance as mainland funds resumed stock purchases in Hong Kong
- Markets in the region were mixed as Japanese stocks slid in tandem with overnight losses on Wall Street
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Hong Kong stocks rose, lifting the benchmark index to a second weekly advance, as strong corporate earnings encouraged mainland Chinese investors to boost their purchases.
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The Hang Seng Index climbed 1.1 per cent to 29,078.75 at the close on Friday, keeping the market ahead by 0.4 per cent for the week. The Shanghai Composite Index added 0.3 per cent, brining it to a 1.4 per cent weekly gain despite record bearish bets during the week.
Sentiment got a lift from the quarterly result by Ping An Insurance (Group) and inflows from Chinese onshore traders through the Stock Connect scheme.
Ping An jumped 1 per cent to HK$87.10 after posting a 4.5 per cent increase in first-quarter income. Mainland investors has bought combined HK$39.6 billion (US$5.1 billion) worth of Hong Kong-listed stocks so far this month, reversing total net selling of HK$12.7 billion in March, according to Bloomberg data.
“We are positive on Hong Kong stocks,” said Cheng Yu, a Shanghai-based fund manager at HSBC Jintrust Fund Management, who invests in Hong Kong stocks through the Stock Connect scheme. “Some of the first-quarter results have confirmed the strength of corporate earnings going into the second quarter.”
Markets in Asia were mixed on Friday, with Japan being the worst performer. US equities were sold overnight following news about President Joe Biden’s plan to to increase the capital gains tax on wealthy Americans.
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