Hong Kong Stocks Seesaw As Lenovo Jumps, Airlines Tumble

Hong Kong stocks swung between slim gains and losses Tuesday morning, with the Hang Seng Index inching down 0.1% after small gains at the open. Major energy plays posted a broad advance after global crude-oil prices moved sharply higher overnight. Cnooc Ltd. rallied 3.3%, China Petroleum & Chemical Corp. (Sinopec) rose 1.5%, and PetroChina Co. added 1%. However, the resulting upward pressure on fuel prices sent airlines falling across the board, as China Southern Airlines Co. dropped 4.7%, China Eastern Airlines Corp. slid 3.8%, Air China Ltd. lost 2.9%, and Hong Kong-based Cathay Pacific Airways Ltd. dropped 1.8%. Chinese computer maker Lenovo Group Ltd. surged 8.1% despite its third-quarter net profit falling 4.5% year-on-year, as the result was better than market forecasts and the weakness mostly due to U.S. acquisitions. Casino stocks mostly rebounded after previous heavy losses, shrugging off an eighth consecutive month of declines in Macau gambling revenues in January. Wynn Macau Ltd. headed 1.4% higher, Sands China Ltd. improved by 0.9%, Galaxy Entertainment Group Ltd. tacked on 0.7%, and Melco Crown Entertainment Ltd. moved up 0.4%, although MGM China Holdings Ltd. declined 1.4%. Mainland Chinese banks were mixed despite reports saying the central bank injected fresh liquidity into the markets via reverse repurchase Tuesday morning. Bank of Communications Co. fell 0.5%, while China Minsheng Banking Corp. rose 0.3%. Over on the mainland, the Shanghai Composite Index gained 0.6%, looking to possibly break its five-day losing streak.

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