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Friday, October 14, 2016, 17:03

Shares rise on China inflation data but slide on

By Reuters

Hong Kong stocks ended a bearish week on an upbeat note on Friday after mainland China's producer prices unexpectedly rose for the first time in nearly five years, easing some of the pressure on Chinese miners and manufacturers.

The Hang Seng index rose 0.9 percent to 23,233.31 points, while the China Enterprises Index gained 1.1 percent to 9,601.40.

But for the week, the Hang Seng dropped 2.6 percent, its worst weekly performance in a month.

After a strong third quarter, the Hong Kong market has recoiled amid a resurgence in global volatility ahead of the US presidential election in November, an expected US interest rate hike in December and the start next year of what are expected to be tough negotiations on Britain's exit from the European Union.

Chinese data for September so far has been a mixed bag for investors. Markets retreated after disappointing export and import numbers on Thursday, but drew some comfort from pickups in producer and consumer prices reported on Friday.

Stronger-than-expected producer price data points to higher profits and gives companies more room to service their debts.

All main sectors rose on Friday, with energy and financial shares leading the gains.

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