Hong Kong shares surged 3.6 percent in their third straight day of gains on Friday, taking cues from the mainland market where hopes of an early economic recovery sent the Shanghai index soaring. Friday's broad-based rally helped the blue chip index finish the week 2.8 percent higher.
But PCCW, which resumed trade on Friday, fell 2.9 percent as uncertainty loomed over its privatisation bid, despite the bid receiving shareholder approval on Wednesday, as the securities watchdog began its investigation into vote-buying allegations. The benchmark Hang Seng Index added 476.14 points to rise to 13,655.04 led by a 5.1 percent gain in heavyweight China Mobile.
Mainboard turnover fell to HK$45.4 billion from Thursday's more than $52 billion but was stronger than the dismal levels seen earlier this week. "Confidence in the Shanghai market is pretty high compared with that in the US or in Hong Kong with some economic signs looking good," said Linus Yip, strategist with First Shanghai Securities.
The China Enterprises Index of top mainland firms rose 3.3 percent to 7,698.67, buoyed by a 4 percent rally on the Shanghai Composite Index. Financial stocks surged for yet another session after data earlier this week showed a strong growth in lending for January. Top bank ICBC rose 4.6 percent, taking its total gains this week to 9 percent, while China Life, the world's largest insurer by market value, climbed 4 percetion from its car-making units.
Hutchison Whampoa underperformed the broad market with a 0.7 percent gain after Husky Energy, its Canadian oil producing unit, reported a 79 percent drop in fourth-quarter earnings, dragged down by the steep fall in crude oil prices. Canada's No 2 oil producer and refiner, which is more than 70 percent owned by Li Ka-shing's Hutchison and Cheung Kong Holdings, also slashed its dividend by 40 percent.