Hong Kong stocks rose a quarter of a percent on Tuesday with investors cautious ahead of the US presidential election, while China commodity plays such as oil producer CNOOC surged on strong performance figures.
"The market is sluggish and slow. Everyone is waiting for the US election," said Alfred Chan, chief dealer at Cheer Pearl Investment Ltd.
The election will be held next Tuesday. Chan said Hong Kong investors are not interested in who wins the election, but are monitoring US market reaction and any long-term impact on the US economy.
"We don't give a damn who wins, but we do care about the economy," Chan said.
The blue chip Hang Seng Index ended up 0.27 percent, or 34.25 points, at 12,852.35. Volume was below recent averages with HK $10.7 billion (US $1.37 billion) worth of shares exchanged.
China commodity plays were among the top performers, thanks to strong third-quarter earnings and performance announcements.
Offshore oil and gas producer CNOOC Ltd, the Hang Seng's second best performing share so far this year, rose 3.09 percent to HK $4.18 after reporting a 66 percent surge in third quarter turnover on the back of rising global oil prices and increased output.
Shares in the world's No 2 aluminium producer, Aluminium Corp of China Ltd (Chalco), rose 2.82 percent to HK $4.55 after the firm said late on Monday that its third-quarter average alumina sales price rose 39 percent from the year-ago period amid a global shortage.
Petroleum products and chemicals maker Jilin Chemical Industrial Co Ltd surged 9.88 percent to HK $2.23 after announcing its third-quarter net profit leapt 15-fold as it ran its plants at full-tilt to cash in on rising petrochemical prices.
Traders said China plays were also boosted by talk that international funds were moving money into Hong Kong to speculate on a potential revaluation of China's currency. Some of that money may go into Hong Kong dollar assets in the coming weeks with the Hong Kong dollar increasingly seen as a proxy to the yuan as the two economies become more closely integrated.
But some fund managers say it is too early to speculate on a yuan revaluation with Beijing authorities focused on slowing down China's fast-growing economy.
Hong Kong exporters put in a mixed performance ahead of data showing Hong Kong exports grew by a slower-than-expected 14.1 percent in the 12 months through September.
Sourcing firm Li & Fung Ltd was a top blue chip loser, falling 0.93 percent to HK $10.65.
But mini-motor maker Johnson Electric Holdings Ltd rose 0.68 percent to HK $7.35.
The United States is Hong Kong's second largest trading partner after China.
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