Update | Hong Kong stocks reach near 10-year high led by financials, autos despite sell-off in Macau casinos

Hong Kong stocks reached their highest level in almost 10 years at the close on Friday, as sentiment was buoyed by strong gains on Wall Street overnight and advances in the local financial and auto sectors.

The Hang Seng Index closed up 0.3 per cent, or 78.9 points, to 28,458.04 – its highest level since December 12, 2007 – after rising for two straight sessions this week. Market turnover on Friday was HK$103.56 billion.

The Hong Kong market was closed on Monday and Thursday for public holidays.

“Market sentiment is quite optimistic,” said Castor Pang Wai-sun, Core Pacific-Yamaichi’s head of research. “People are primarily looking at positive factors, with all three major US indices hitting fresh highs [overnight] and better prospects on US tax reform,” he said.

In the US, Republicans moved closer to a tax overhaul on Thursday by adopting a spending blueprint that allows them to bypass Democrats to pass a tax bill.

Strong economic data also fuelled optimism, lifting US stocks to records and pushing up Treasury yields. Consequently, Hong Kong insurance stocks were lifted by the month-long rise in the yield on 10-year Treasuries, as they are insurers’ major assets, said Pang.