Hong Kong shares rose 1.23 percent to their highest level in more than 14 months on Monday, helped by commodities companies and mainland banks due to bargain-hunting. The benchmark Hang Seng Index finished up 270.56 points at 22,200.46. Turnover was 60.63 billion Hong Kong dollars (7.82 billion US).
The index recorded its best finish since closing at 22,514 on August 4 last year and has risen 5.6 percent in October. "The local market is likely to be volatile this week, with the focus on quarterly earnings reports in the US and economic data in China," said Mark To, associate director at Prudential Brokerage.
"But concerns about overcapacity in China and possible tightening measures from Beijing remain an overhang on local shares." Apple and Texas Instruments are scheduled to report quarterly earnings Monday and Caterpillar and Coca-Cola report their results Tuesday. Chinese figures Thursday are expected to show gross domestic product (GDP) in the September quarter grew 9.1 percent year on year, according to a survey of 12 economists by Dow Jones Newswires. China's GDP grew 7.9 percent in the second quarter and 6.1 percent in the first three months. Oil prices, which are moving towards 80 US dollars a barrel, helped the gains.
PetroChina rose 3.0 percent to 10.28 Hong Kong dollars and CNOOC gained 4.2 percent to 12.42. "As the oil price is expected to hit 80 dollars a barrel, these stocks are now moving in advance," said Castor Pang, research director at Cinda International.
PetroChina has gained 17 percent since the start of this month and CNOOC has risen 19 percent over the same period. Among mainland banks China Construction Bank rose 1.6 percent to 6.85, Bank of China was up 1.4 percent at 4.48 and BOC Hong Kong gained 4.3 percent to 18.08.
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