Hong Kong Stocks Recovery Further As Protests Ease

MarketWatch Pulse

Hong Kong stocks reversed opening losses on Monday to head higher, as tensions eased in the city with some pro-democracy demonstrators withdrawing from the protest zones. The Hang Seng Index rose 0.5%, heading higher for a second day after recent weakness. The Hong Kong Monetary Authority announced earlier in the morning that several banks had resumed normal services in the affected areas, with only 7 branches of 7 banks remaining temporarily closed. Index heavyweight HSBC Holdings PLC recovered 0.6% after eight straight sessions of losses, and local lender Chong Hing Bank Ltd. advanced 1.3%. Hong Kong retailers bounced back, with top winners including jeweler Chow Tai Fook Jewellery Group Ltd. and cosmetics vender Bonjour Holdings Ltd. each up 2.8%. Macau casino operators also rebounded as protests calmed down: Sands China Ltd. jumped 4.5%, Galaxy Entertainment Group Ltd. climbed 2.9%, and both SJM Holdings Ltd. and MGM China Holdings Ltd. rose 2% apiece. Meanwhile, Shanghai's stock market and other mainland Chinese bourses remained closed for the National Day holidays.

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