Hong Kong stocks posted a solid rebound on Monday following five straight days of declines, after regulators announced that the long-awaited Hong Kong-Shanghai Stock Connect program would start Nov. 17, while China’s October consumer inflation came in line with market forecasts.
The Nikkei 225 docked 99.85 points, or 0.6%, to 16,780.53, with the yen strengthening to ¥114.05 against the U.S. dollar from ¥114.60 in the previous session.
In Hong Kong, the Hang Seng index hiked 194.46 points, or 0.8%, to 23,744.70. The index had been declining for five straight sessions before Monday.
The Stock Connect program, which will allow individual investors outside of China to buy Shanghai-listed shares for the first time ever, had been expected to start late last month, but was delayed, with some blaming the wait on pro-democracy protests in Hong Kong.
In Hong Kong markets, shares of Hong Kong Exchanges & Clearing Ltd., the city’s sole exchange operator, leapt 4.6%, while brokers rose significantly, with First Shanghai Investments Ltd. leading the advance with a 7.8% surge.
Shenyin Wanguo HK Ltd. spiked 4.3%, Guotai Jun’an International Holdings Ltd. jumped 3%, China Galaxy Securities Co. climbed 2.9%, and Haitong Securities Co. added 2.5%.
Banks also headed higher, with China Minsheng Banking Corp. advancing 4.1%, China Citic Bank Corp. improving by 1.4%, and Bank of Communications Co. higher by 1.2%.
Hong Kong-based Link Real Estate Investment Trust rose 2.6%, after Hang Seng Indexes Company said the stock would be added to the benchmark Hang Seng Index starting Dec. 8, while Cosco Pacific Ltd. would be removed. Shares of Cosco Pacific fell 1.1%.
CHINA
Shanghai’s CSI 300 index gained 63.58 points, or 2.5%, to 2,565.73, also benefiting from the announcement of the Stock Connect launch.
On the same day, official data showed that China’s consumer-price index grew 1.6% in October from a year earlier, unchanged from the previous month, matching a median forecast by economists from a Wall Street Journal survey.
In other markets;
Singapore’s Straits Times Index gathered 14.61 points, or 0.4%, to 3,301
The Taiex index in Taiwan catapulted 137.36 points, or 1.5%, higher to 9.049.98
Korea’s Kospi index moved higher 18.36 points, or 1%, to 1,958.23
New Zealand’s Exchange 50 advanced 51.35 points, or 1%, to 5,470.34
Australia’s S&P/ASX 200 faded 25.17 points, or 0.5%, to 5,523.96
