Hong Kong share prices closed 1.67 percent higher on Monday following a surge on Wall Street at the end of last week, dealers said. The benchmark Hang Seng Index finished the session 336.92 points higher at 20,535.94. Turnover was 62.21 billion Hong Kong dollars (8.02 billion US).
Property companies led the surge after the Dow Jones Industrial Average rose 1.67 percent on Friday, boosted by data showing US existing-home sales rose to their highest level in nearly two years in July. Local shares were also boosted by Federal Reserve Chairman Ben Bernanke saying prospects for a return to growth in the near term appear good.
"For the short term I think Bernanke practically put up a sign on Friday saying 'It's official, the recovery is happening, you should buy stocks now,' which is going to get some lemmings off the fence," a Hong Kong-based fund manager who declined to be named told Dow Jones Newswires. Property-to-ports conglomerate Wharf jumped 5.3 percent to 34.90 Hong Kong dollars on the prospect of a strong first-half report Wednesday, while Henderson Land rose 3.4 percent to 48.70.
Aluminium and alumina producer Chalco gained 3.4 percent to 9.21 ahead of its first-half results later Monday. China Construction Bank rose 2.6 percent to 5.99 dollars after posting Friday an above forecast net profit of 55.81 billion yuan (8.15 billion dollars) in the first-half.
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