Hong Kong blue chip stocks ended slightly higher after quiet trading on Monday, with investors snapping up selective oil stocks after crude oil prices soared to record highs. The blue chip Hang Seng Index rose 0.24 percent, or 33.74 points, to 13,945.77, outperforming regional markets.
Tokyo's benchmark Nikkei average was down 0.27 percent and South Korea's benchmark KOSPI fell 0.9 percent. Volume was light at HK$14.8 billion ($1.9 billion) versus HK$17.6 billion at Friday's close.
"The oil price rise was the major factor today, and investors focused on oil stocks in an otherwise quiet market," said Y.K. Chan, strategist at Phillip Securities.
Traders also said that stocks were likely to trade within a 200-point range this week with investors eyeing a US rate-setting meeting at the end of the month. Funds are also tied up ahead of the trading debut of China's Bank of Communications on Thursday.
Shares in China's top oil producer PetroChina gained 3.74 percent to HK$5.55 after setting a new all-time high of HK$5.60 on the back of record-high oil prices. Oil climbed over $59 a barrel, extending last week's surge. Offshore oil producer CNOOC rose 1.2 percent to HK$4.225 although investors are eyeing talk the firm is preparing a counter-bid to Chevron Corp's US $16 billion offer for Unocal Corp.
Analysts are wary that CNOOC could pay too high a price for Unocal. Daiwa Institute of Research has downgraded CNOOC to "outperform" from "buy" over concerns related to the bid. The rise in the oil stocks helped push China enterprise stocks, also known as H-shares, 1.17 percent higher to close at 4,762.87.
Copper stocks rose after London Metal Exchange prices rose to record highs amid worries over tightening supply as demand remains firm. Jiangxi Copper shares rose 2.63 percent to HK$3.90. China shipping shares rebounded after recent losses and as COSCO's parent firm COSCO Holdings opened the order book for its upcoming IPO worth about US $1.65 billion. Hong Kong-listed COSCO Pacific shares rose 0.7 percent to HK$14.45.
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