Hong Kong shares ended 0.10 percent higher Friday thanks to a late buying spree, bucking a broad regional sell-off despite a negative lead from Wall Street. The benchmark Hang Seng Index added 23.69 points to 23,221.52 on turnover of HK$48.28 billion (US $6.23 billion). The index spent most of the day in negative territory following New York's losses.
On Thursday the US government said consumer spending, which accounts for more than two-thirds of economic activity, rose just 0.2 percent in May after a flat April. That came a day after news that the economy shrank a lot more than first thought in January-March, leading to worries that a recovery is still fragile. The Dow eased 0.13 percent and the S&P 500 dipped 0.12 percent, having both touched record highs at the end of last week. The Nasdaq was flat.
Attention is now on the release next week of data on Chinese manufacturing activity. HSBC's preliminary June reading of its own purchasing managers index showed growth in the sector for the first time this year. That added to a recent spurt of upbeat figures indicating a slowdown in the world's number two economy and key driver of global growth may be coming to an end.
In share trading HSBC slipped 0.82 percent to HK79.05, Internet firm Tencent edged down 0.08 percent to HK$118.3, ICBC bank was unchanged at HK$4.9 and China Mobile gained 0.33 percent to HK$75.60. Cathay Pacific Airways put on 0.42 percent to HK$14.46 and Ping An Insurance of China dipped 0.75 percent to HK$59.75. In China the benchmark Shanghai Composite Index edged down 0.11 percent, or 2.17 points, to 2,036.51 on turnover of 76.7 billion yuan ($12.3 billion). The index rose 0.49 percent for the week.
The Shenzhen Composite Index, which tracks stocks on China's second exchange, gained 0.62 percent, or 6.65 points, to 1,086.98 on turnover of 119.4 billion yuan. The index jumped 3.51 percent over the week. The broader markets were hurt by big interest in new listings. Three companies started trading in Shenzhen on Thursday, the first of a group of 10 recently approved by the market regulator for listings.
"Investors focused their attention on the new shares," BOC International analyst Shen Jun told AFP. "Sectors such as the financial and real estate industries are weak, which dragged on the broader market." Shares of the newly listed Shenzhen companies surged Friday, adding to the previous day's gains. Longda Meat Foodstuff rose by its 10 percent daily limit to 15.51 yuan, Xuelang Environmental Technology jumped 10 percent to 23.33 yuan and Feitian Technologies was also up 10 percent at 52.48 yuan. In Shanghai, China Eastern Airlines added 1.32 percent to 2.30 yuan, Wuhan Iron & Steel dipped 0.49 percent to 2.02 yuan and SAIC Motor gained 0.13 percent to 15.32 yuan.
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