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Friday, August 12, 2016, 17:18

HK shares rise to 9-month high

By Reuters

Hong Kong shares powered to a nine-month high on Friday, taking cues from Wall Street's records overnight, with energy shares leading the charge on higher oil prices.

The benchmark Hang Seng index rose 0.8 percent, to 22,766.91, while the China Enterprises Index gained 1.4 percent, to 9,554.85 points.

For the week, HSI gained 2.8 percent while HSCE jumped 4.6 percent.

Sentiment was lifted by overnight performance in US stocks. The S&P 500, the Dow Jones Industrial Average and Nasdaq all closed at historic highs on Thursday for the first time since 1999, on higher crude oil and upbeat corporate results.

With central banks in the UK, Europe and Japan launching quantitative easing to stimulate the economy, pushing government bond yields to historic lows, yield-hungry investors are starting to hunt for income in stocks.

The Hang Seng, which trades at half the valuation of Dow or S&P, have climbed roughly 25 percent from this year's low in mid-February.

Nearly all sectors rose on Friday, with an index tracking energy stocks up 1.8 percent.

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