Hong Kong share prices closed 0.79 percent higher on Tuesday following gains on Wall Street and stronger oil prices. The benchmark Hang Seng Index added 168.01 points to 21,467.36. Turnover was 60.44 billion Hong Kong dollars (7.80 billion dollars). Strength in Shanghai's markets, which closed 1.44 percent higher Tuesday, gave Hong Kong a boost, led by state-owned oil producers after an overnight rise in crude prices.
Analysts said they expect the blue chip index to rise further and return to 22,000 points later this week, driven by strength in commodities stocks amid weakness in the US dollar. Conita Hung, head of equity research at Delta Asia Financial Group, said she expects Chinese commodities firms to lead near-term strength in the index. "Continued weakness in the US dollar is expected to provide further support to commodity stocks," she told Dow Jones Newswires.
Oil producers were the biggest gainers Tuesday following 2.1 percent jump in November crude oil futures overnight in New York to 73.27 dollars a barrel. Offshore oil producer Cnooc jumped 3.1 percent to 11.50, PetroChina added 2.5 percent to 9.47, and Sinopec ended up 1.0 percent at 6.82. Chinese developers fell on concerns over expensive valuations.
China Overseas Land fell 1.3 percent to 17.26, ignoring news the company's property sales in September more than doubled from a year earlier. On its debut, sausage-casing maker Shenguan Holdings jumped 40 percent to 4.33 from its initial public offering price of 3.10. The company raised 159 million US dollars in its IPO after pricing at the top end of the indicative range.