Hong Kong stocks hit a six-year high on Friday as Cheung Kong and other property shares augmented their gains this week after tame US inflation data boosted hopes that the Federal Reserve would not need to raise interest rates any time soon.
The benchmark Hang Seng index hit a six-year high in the morning but pared those gains to close 31.45 points higher at 17,423.72, for a weekly gain of 2.8 percent.
Traders attributed the early rise to regional program trading as other Asian markets, including Japan, South Korea, Taiwan rallied with Hong Kong simultaneously shortly after 0400 GMT.
The Hang Seng property sub-index rose 0.6 percent to 20,990.64. "The buying is starting to creep back as new funds come into the market," said Antony Mak, sales director DBS Vickers. "In September, the market should be more active." Though stocks held firm, analysts said investors were cautious ahead of the US jobs report due out later in the day, which may provide clues about the health of the US economy.
"Some believe US interest rates...have peaked; the market is now focusing on growth factors," said Eric Wong, analyst at Richmond Asset Management. "People should doubt that the US will have a soft landing. Recent figures have given a mixed picture." Properties outperformed the broad market, with Hang Lung Properties jumping 3.1 percent to HK$17.10.
Cheung Kong Holdings Ltd edged up 0.8 percent to HK$86.55. The improved rate outlook also boosted BOC Hong Kong, which set a new record high for the second straight session, three days after it reported better-than-expected interim earnings. The city's number-two lender, the second most active issue, ended at HK$17.14, up 0.5 percent.
Bank of East Asia, which gained 0.9 percent to HK$34.90, also set a life high in earlier trade. Cellular carrier China Mobile gained for the sixth straight day, ending at HK$52.55, up 0.5 percent and setting fresh six year peaks.
Foxconn International Holdings Ltd, the mobile handset arm of Taiwan's Hon Hai Precision Industry Co, soared 8.5 percent to HK$22.3 - just 10 cents off its new peak of HK$22.4 - after saying its first-half earnings had more than doubled.
Shanghai-based developer Shimao Property Holdings Ltd shot up 3.4 percent to HK$7.67 after reporting first-half profit jumped more than two-fold. It struck a record high since listing in July.
Aluminium Corp of China Ltd, the world's second-largest producer of alumina, dropped 3.4 percent to HK$5.36 after the metal giant slashed its spot alumina price by 22.4 percent, the second price cut in less than a month. Turnover was HK$27.4 billion (US $3.5 billion) compared to Thursday's HK$28.3 billion.