Hong Kong Stocks Pare Previous Day's Losses

MarketWatch Pulse

Hong Kong stocks made a move to the upside Tuesday morning, with the Hang Seng Index rising 0.6%, almost erasing the previous session's 0.7% loss on the back of disappointment over the delay in direct share trading between Hong Kong and Shanghai. Likewise, Hong Kong's mainland-China-tracking H-share index moved 0.8% higher, while further north, the Shanghai Composite Index rose 0.5%. Financial stocks, hit hard a day earlier, were among the gainers, with Agricultural Bank of China Ltd. and Bank of Communications Co. up 1.1% each, and China Construction Bank Corp. up 1.3%, while China Life Insurance Co. added 0.9% ahead of its earnings, due later in the day. Shares of shoe retailer Belle International Holdings Ltd. jumped 8.6% after the company posted a 7.6% increase in first-half net profit. In the auto sector, Great Wall Motor Co. rallied 3.7% as Reuters quoted its president as predicting improving sales on the back of new model launches. Electric-car maker BYD Co. similarly rose 2.9%, and Brilliance China Automotive Holdings Ltd. added 1.2%, though Geely Automobile Holdings Ltd. lost 0.3%. Among other blue-chip gainers, China Mobile Ltd. rose 1.3%, Hang Lung Properties Ltd. improved by 1.5%, and gold mining Zijin Mining Group Co. enjoyed a 3.2% advance after falling in the Monday session despite a 10% gain to its January-September profit. On the downside, Agile Property Holdings Ltd. lost 0.7%, and Standard Chartered PLC fell 0.9%, while PetroChina Co. and Cnooc Ltd. tracked weakening oil prices to retreat 1% and 1.1%, respectively.

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