Hong Kong blue chips rose 0.2 percent to their third straight record close on Friday, as investors chased property stocks and China Mobile rallied to a fresh six-year high.
The benchmark Hang Seng index set an intraday high at 18,771.01 before ending the day up 34.91 points at 18,749.69. It gained 2.5 percent for the week, as investors looked past a recent string of soft US economic data. US jobs data for October due later in the day is expected to show a strong number. "It's a massive liquidity push - you just go with it," said Matt McKeith, head of equity dealing at First State Investments.
"There's a positive feel to the market and it's difficult to find reasons not to be in it. I think there are concerns on the horizon about US consumer spending, the housing market, which could unravel down the road, but Hong Kong decided not to take that on board."
Hong Kong and mainland China continues to see strong fund inflows, garnering a net inflow of $174 million for the seven days ended October 25 as Asian funds have raised their country weights in China to a record 13.3 percent, according to Citigroup.
But some fund managers were concerned that funds could leave the region. "To be frank, we are cautious because a liquidity outflow can cause a big correction," said Renault Kam, director at Atlantis Investment Management (Hong Kong) Ltd.
"It really depends on the sentiment of the institutional investor. They could lock in the profits and chase laggards in other Asian markets." Investors found underperformers and bargains in property stocks after chasing up HSBC Holdings to a fresh record in morning trade.
Hang Lung Properties jumped 2.6 percent to HK$17.32 and Cheung Kong rose 1.7 percent to HK$86.4. Sun Hung Kai Properties gained 1.3 percent to HK$87.55. The Hang Seng property sub-index shot up 1.5 percent to 21,364.87, a level last seen in May.
HSBC eased 0.2 percent to HK$149.90 after setting its third straight record. The market's other heavyweight, China Mobile, gained for the fourth straight day, rising nearly 1 percent to HK$66.5, earlier tapping highs unseen since August 2000.
Newly listed and top mainland lender Industrial & Commercial Bank of China jumped 2.6 percent to HK$3.59 as long-term investors moved in following a week of profit-taking by holders of the IPO issues. Lenovo Group rose 2.4 percent to HK$3.48 ahead of the computer maker's first-half earnings report due next week. Turnover was HK$42.7 billion (US $5.5 billion) compared to Thursday's HK$39.1 billion.
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