The stock market in Hong Kong is trading in positive territory on Monday morning, led by financials, property stocks and china-related stocks on growing optimism that the worst of the global economic crisis is over and the initiatives of the governments will yield positive results in the near term. Additionally, comments by Fed Chairman Ben Bernanke that the policies initiated to unclog the credit markets are showing positive signals are supporting the markets.
On Friday, the Dow closed up 39.51 points or 0.5% at 8,018, the Nasdaq closed up 19.24 points or 1.2% at 1,622 and the S&P 500 closed up 8.12 points or 1% at 842.
In Asian trading, crude oil is currently up $0.64 at $53.15 a barrel in electronic trading. Light sweet crude for May delivery closed down $0.18 at $52.46 a barrel on the New York Mercantile Exchange on Friday after dismal employment report fueled concerns over energy demand.
The benchmark Hang Seng Index opened sharply higher at 14,921, compared to its previous close of 14,546, and is presently trading at 15,054, up 3.50% or 508.63 points.
Property stocks, financials, resources and china-related stocks are the major gainers in early trading. All the components of the Hang Seng Index, except one, are trading in positive territory.
Among property stocks, Henderson Land is gaining 6.75%, Wharf Holdings is adding 7.28%, SHK Properties is advancing 7.13%, New World Development is surging up 10.23% and Sino Land is rising 8.13%. Other property stocks such as Hang Lung Property and Sino Land are also trading in positive territory.
Financial stocks are also advancing. HSBC Holdings is up 3.64%, Bank of China is gaining 3.44%, Bank of Communications is advancing 6.56%, ICBC is rising 5.16% and Bank of East Asia is moving up 7.16%.
Insurance stocks are advancing. Ping An is gaining 4.63% and China Life is advancing 4.48%.
Resource stocks are trading higher. Aluminum Corporation of China, or CHALCO, is gaining 7.68%, CNOOC is advancing 3.36% and PetroChina is adding 5.06%
China-related stocks are also advancing. China Resources is rising 2.23%, China Mercantile Holdings is gaining 2.72% and China Overseas is adding 2.13%.
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