The stock market in Hong Kong opened strongly on Tuesday, led by financial stocks, The market is taking heart from the positive close by Wall Street stocks, which benefited from the U.S. government's plan to buy bad assets from banks.
On Monday, the Dow closed up 497 points or 6.84% at 7,776, the Nasdaq gained 99 points or 6.76% to 1,556, and the S&P 500 advanced 54 points or 7.08% to finish at 823.
Crude oil is currently trading at $53.56 a barrel, down $0.24 in electronic trading. On Monday, crude oil ended higher by $1.73 at $53.80 a barrel on New York Mercantile Exchange after hitting an intra-day low of $51.62 and a high of $54.05.
The benchmark Hang Seng Index opened 325 points higher at 13,773, and is currently trading at 13,623, up 1.30% or 175 points.
Financials and telecom stocks are the major gainers in early trading.
Among financials, HSBC Holdings is gaining more than 6.5%; BOC Hong Kong is advancing 2.51%, Bank of East Asia is moving up 1.09%, and Bank of China is rising 1.72%. However, Hang Seng Bank is decreasing 0.51%, giving away all of the gains in early trading.
Telecom stocks are also advancing; Hutchison Whimpoa is gaining 2.37%, China Mobile is advancing 1.51%, and Tencent Holdings is adding 4.13%.
Insurance stocks are also gaining. Ping An Insurance is adding 1.90% and China Life is moving up 0.97% from previous close.
Among other major stocks, Foxconn International Holdings is sharply moving up by more than 8.5%,, while retailer Espirit Holdings is declining sharply by 6.35%
Resource stocks are trading mixed. While Aluminum Company of China, or Chalco, is down 2.34%. CNOOC and Petrochina are advancing 2.24% and 0.93% respectively.
China-related stocks are trading weaker, on profit taking. China Resources is down 1.32%, and China Overseas is losing 0.94%, and Espirit Holdings is declining sharply by 6.35%.
Weak sentiment is also visible among utility stocks. While HK Electric is down 2.12%, HK & China Gas is trading unchanged.
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