Non-nuclear energy stocks led gains as Hong Kong and Shanghai shares ended higher on Wednesday, with panic selling subsiding and investors looking to position themselves amid the nuclear crisis in Japan. The Hang Seng Index finished up 0.1 percent at 22,700.88, while the China Enterprises Index gained 0.72 percent.
Alternative energy stocks surged, led by China Longyuan Power Group Corp Ltd , one of China's largest wind power producers. It gained 3.7 percent on Wednesday. Investors are bullish on the non-nuclear energy sector because of the continuing Japan nuclear crisis and China's growing demand for energy, analysts say.
Traditional energy stocks rode this wave, with coal and gas counters among the leading gainers of the day. Hong Kong and China Gas Co Ltd rose 2.62 percent on Wednesday after the company announced strong 2010 earnings late on Tuesday. Its 2010 net profit was up 6 percent over 2009. Overseas events largely weighed more on the Hong Kong market ahead of annual earnings announcements today.
China Mobile Ltd , the world's largest mobile operator, fell 1.66 percent and was the bigger loser on the benchmark. While the company reported 2010 earnings that were in line with expectations, analysts warned that China Mobile's growth would slow with increasing competition in the telecommunications industry.
China's benchmark Shanghai Composite Index closed up 1.2 percent at 2,931 points as investors jumped into industrial stocks as Asian markets regained their footing after losses Monday and Tuesday. Aluminium Corp of China Ltd soared 10 percent in the day's trade. Rare earths also gained, with Inner Mongolia Baotou Steel Rare Earth (Group) Hi Tech Co Ltd , a leading producer, up 7.1 percent in heavy trading.
Traditional and new energy stocks rose as Japan struggled to contain its disaster. Chinese authorities are relying on nuclear power as a major part of plans to cut dependence on coal over the next decade. China's largest coal company, China Shenhua Energy Co Ltd , rose 4.5 percent. Xinjiang Guanghui Industry Co Ltd , a leading natural gas producer, ended up 1.8 percent. Xinjiang Goldwind Science and Technology Co Ltd, the world's fifth-largest wind turbine maker, extended gains over the past two days to end the day up 1 percent.
Nuclear power leader Dongfang Electric Corp Ltd halted its two-day slide, gaining 1.9 percent in on Wednesday. China's insurers gained after Moody's said it saw a stable outlook for the sector. The financial sub-index finished up 1.1 percent, with large insurer Ping An Insurance (Group) Co of China Ltd up 1.4 percent.
Financial stocks were also helped by receding expectations among households in the first quarter, though more bankers believe monetary policy will be tightened in the second quarter of this year, a survey released by the Chinese central bank on Wednesday showed. China's largest bank by market value, Industrial and Commercial Bank of China Ltd, rose by 0.9 percent.