World Economy

Hong Kong Shares Extend Gains

Hong Kong Shares Extend GainsHong Kong Shares Extend Gains

Hong Kong shares extended gains to end firmer on Friday, scoring its best week in three months, as capital outflow worries eased after the US dollar took a breather from its pre Trump inauguration rally.

The benchmark Hang Seng index finished 0.2% higher, at 22,503.01 points, bringing its weekly gain to nearly 2.3%, the highest since October 7, CNBC reported.

The Hong Kong China Enterprises Index gained 0.1%, to 9,611.05 points.

Traders attributed the market’s bounce the previous session to a pullback in the dollar after the Federal Reserve’s minutes signaled a more prudent stance to interest rate hikes rather than a surge in offshore yuan.

A pause in the US dollar’s rise offered some solace to Asian stocks, which were under pressure in December on worries about capital flowing out of emerging markets amid hopes of faster US growth.

The dollar index, which tracks the greenback against six major world currencies, hit a low of 101.37 in early trade, around 2.4% down from an intraday high set on Tuesday.

Reflecting less investor anxiety in the city, the HIS Volatility Index, a gauge of market stress, lost 18.5% from a high set on December 28.

Sector performance was a mixed bag in Hong Kong.

The energy sector gave back some early gains and added nearly 0.5% at the end of day on Friday, with weakness in mainland miners offsetting the bullish effect from recently stronger oil prices.

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