Hong Kong shares ended 1.95 percent higher on Wednesday, with sentiment lifted by better-than-expected economic data out of China and further US dollar weakness boosting commodities stocks, dealers said. The benchmark Hang Seng Index finished 419.12 points up at 21,886.48. Turnover was 64.56 billion Hong Kong dollars (8.33 billion US).
Data showing that China's exports fell at the slowest pace in nine months in September indicated demand for Chinese goods was improving and helping the government sustain the recovery. Exports fell 15.2 percent to 115.9 billion dollars on-year in September, customs authorities said. It was the best result since exports fell 2.8 percent in December as the global crisis began to set in.
Meanwhile the price of New York oil jumped Wednesday above 75 dollars per barrel, its highest this year. on the back of the tumbling dollar, analysts said. "Commodity shares are likely to remain strong with weakness in the US dollar a key factor supporting gains in commodity prices," Louis Tse, an investment strategist at Value Convergence CEF, told Dow Jones Newswires.
PetroChina surged 5.2 percent to 9.96, Cnooc rose 3.5 percent to 11.90, and Sinopec rose 3.1 percent to 7.03. Gold companies were higher, with the precious metal rising to a new record 1,070.80 dollars an ounce, buoyed by the dollar's drop to a 14-month low against the euro. Zijin Mining rose 2.2 percent to 8.38, while Zhaojin Mining ended up 2.2 percent at 14.62. Alumina and aluminium producer Chalco ended up 2.4 percent at 9.14 and Shenhua Energy rose 1.7 percent to 35.00.
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