Hong Kong Stocks on Course for Highest Close This Month

Hong Kong stocks rose as investors await Federal Reserve Chairman Janet Yellen’s first testimony on monetary policy. Energy companies led gains.

The Hang Seng Index (HSI) advanced 0.7 percent to 21,719.15 as of 9:35 a.m. in Hong Kong, heading for its highest close since Jan. 30. The Hang Seng China Enterprises Index (HSCEI), also known as the H-share index, added 0.6 percent to 9,675.68. CLP Holdings Ltd., a Hong Kong-based electricity provider, rallied 3.2 percent, while Cnooc Ltd., China’s biggest offshore oil and gas producer, climbed 2.3 percent.

The Hang Seng Index entered a so-called correction last week, falling more than 10 percent from a high in December after China and U.S. factory data disappointed investors. The gauge slid 7.4 percent this year through yesterday, the worst performer after Japan’s Nikkei 225 Stock Average among 24 developed markets tracked by Bloomberg.

The Hong Kong benchmark index traded at 9.6 times estimated earnings yesterday, approaching levels seen during China’s cash crunch in June. The H-share gauge is down 11 percent this year through yesterday. Global equity losses in 2014 peaked at $3 trillion on Feb. 4 and have since narrowed to $1.6 trillion, data compiled by Bloomberg show.

China may report as early as today that new yuan loans climbed to 1.1 trillion yuan ($182 billion) in January from 482.5 billion yuan the previous month, according to economists surveyed by Bloomberg. Data on aggregate financing and money supply are also due this week, with no fixed date for release. A report on January trade is due tomorrow, before inflation data on Feb. 14.

(Source: Bloomberg)