The stock market in Hong Kong opened strongly on Friday morning, taking cues from the U.S markets where the major indices ended in positive territory led by technology stocks, on increasing optimism that the efforts initiated by the Government will help in reviving the economy earlier-than-expected. Despite broader weakness in the U.S. economy, hopes of recovery are slowly replacing the outright pessimistic outlook about the strength of the economy and the market sentiment is changing for the better.
On Thursday, the Dow closed up 174.75 points or 2.3% at 7,925, the Nasdaq closed up 58.05 points or 3.8% at 1,587 and the S&P 500 closed up 18.98 points or 2.3% at 833.
In Asian trading, crude oil is currently down $0.27 at $54.07 a barrel, in electronic trading. Light sweet crude for May delivery closed at $54.34 per barrel on the New York Mercantile Exchange, up $1.57 on the session.
The benchmark Hang Seng Index in Hong Kong opened Friday's session at 14,258 compared to its previous close at 14,109, and is presently trading at 14,166, up 0.40% or 56.83 points. Some degree of profit taking is also being witnessed in the markets after a strong rally in the past few trading sessions, which has led to paring back of some early gains.
China-related stocks are also moving to the upside. China Mercantile Holdings is rising 2.67%, Sinopec Corp. is gaining 1.00%, China Overseas is advancing 2.03%, and China Resources is moving up 0.32%.
Telecom stocks are trading higher. Hutchison Whimpoa is rising 0.71%, China Mobile is edging up 0.07% and Tencent Holdings is adding 0.72%.
Financial stocks are trading mixed in early trading. ICBC bank is gaining 1.70%, Bank of China is advancing 1.53% and Bank of Hong Kong is rising 1.83%. HSBC Holdings is up 0.58%. However, Hang Seng Bank is losing 0.12%, Bank of East Asia is down 0.25%, CCB is declining 0.42% and Bank of Communications is falling 1.37% on profit taking.
Insurance stocks are also trading mixed. While Ping An is gaining 0.10%, China Life is down 0.19%.
Among resource stocks, Aluminum Corporation of China, or Chalco, is gaining 2.29%, and CNOOC is rising 1.69%, while Petrochina is down 0.45%.
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