Hong Kong stocks jump

Hong Kong stocks rose on Monday on the back of China Mobile and property plays, after the market dipped in and out of positive territory due to persistent global credit fears sparked by US subprime woes. Heavyweight China Mobile rose 1.12 percent to HK$85.60 on expectations of strong second-quarter earnings, due later this week.
However the market fluctuated amid talk the US central bank could cut rates soon to stave off a global credit squeeze. The implied chance of a rate cut at the September 18 Federal Reserve policy meeting is near 100 percent. On Friday, global central banks injected cash to shore up the banking system and ease anxiety over looming losses related to subprime mortgages. But analysts say the problem is by no means over.
"The market is still very volatile, behaving much as people expected," said Howard Gorges, director at South China Brokerage. "The story of the week is still the US subprime mortgage problem. The markets are still a bit wary and everyone is still very tentative. Investors are not throwing in the towel but there is still some fear around. We are very dependent on the news."
The benchmark Hang Seng Index rose 0.45 percent, or 98.39 points, to close at 21,891.10. The China Enterprises index of Hong Kong-listed mainland firms, or H shares, gained 0.48 percent higher to 12,335.48. Mainboard turnover was HK$63.03 billion (US $8.08 billion), lower than HK$65.5 billion on Friday in a session cut short by a cyclone warning.
"If the mortgage problem escalates we can expect ultimate support for the index to be around 20,000," said Andrew To, sales director, Tai Fook Securities. Hong Kong property plays ended up due to talk that the US central bank could cut rates. Hong Kong rates tend to track the US rate cycle because its currency is pegged to the US dollar.
Shares of property developer Cheung Kong - controlled by Hong Kong tycoon Li Ka-shing - gained 1.94 percent to HK$105.20. Henderson Land rose 1.25 percent to HK$52.85, Sun Hung Kai Properties gained 2.25 percent to HK$95.45 and Sino Land climbed 1.83 percent to HK$16.70. Heavyweight HSBC ended 0.56 percent lower at HK$141.30.
But financial plays such as ICBC gained 2.83 percent to HK$4.73, while Ping An rose 1.55 percent to HK$62.20. Cell phone maker Foxconn International lost 4 percent to HK$21.60. Analysts said late last month the firm might miss first-half earnings forecast due to weak sales at major client Motorola.
Lenovo Group Ltd, the world's No 3 personal computer maker, jumped 6.89 percent to HK$4.81 despite reports on Sunday that Barron's said the stock may be overpriced compared to peers Hewlett-Packard and Dell.
The company reported a sharp rise in first-quarter profit on August 2. And the PC maker announced last week that it wanted to take over a mid-tier PC manufacturer valued at about $800 million to bolster a barely profitable European arm. Zijin Mining Group Co Ltd gained 1.04 percent to HK$5.85 after the company said it had agreed to swap stakes in two Chinese mines with Western Mining Group, allowing the two firms to increase investment in the assets.
China's top refiner Sinopec Corp rose 0.93 percent to HK$7.58 after it said it was in negotiations with Royal Dutch Shell, Kuwait Petroleum Corp and Dow Chemical Co to build a refinery and petrochemical plant in south China worth at least $5 billion.