Publications
Partners
Hong Kong - Hong Kong stocks closed lower on Friday as energy companies took a hit from weak oil prices, but Chinese shares capped their biggest weekly gain in two months on hopes for an economic boost from the weaker yuan.
Hong Kong's benchmark Hang Seng Index lost 0.13% to end the day at 23 991.03 on turnover of HK$64.20bn. The index fell 2.3% over the week.
Energy stocks led the slide after oil prices slumped to fresh six-year lows, approaching their seventh week of falls, as investors worried a global supply glut is set to last.
But Shanghai's main index added 5.91% for the week as domestic investors bet the devaluation of the Chinese currency augured more measures from Beijing to boost sagging economic growth.
"The prevailing local view seems to be that the cut was reasonable considering the slowdown in the economy," Gerry Alfonso, a sales trader at Shenwan Hongyuan in Shanghai, told Bloomberg News.
"There is a perception that the authorities will introduce further measures to support the economy."
The benchmark Shanghai Composite Index gained 0.27% to 3 965.34 on turnover of 647.5 billion yuan.
The Shenzhen Composite Index, which tracks stocks on China's second exchange, rose 0.51% to 2 310.40 on turnover of 574.0 billion yuan. It went up 6.12% over the week.
China's central bank on Friday raised the value of the yuan against the US dollar for the first time in three days after a surprise devaluation on Tuesday widely seen as a move to boost sagging growth.
The rise in the daily reference rate, coupled with an assurance from the People's Bank of China that it would not let the yuan slump, soothed markets unnerved by fears Asia's largest economy is slowing more than previously thought.
Nomura analysts Jens Nordvig and David Fritz said China has enough firepower to control its currency and the worst of the yuan sell-off that started Tuesday was likely over.
Lenovo was the biggest faller among Hong Kong's major shares, dropping 5.84% to HK$7.25 after analysts downgraded their ratings on the computer maker after disappointing earnings.
PetroChina lost 2.02% to HK7.28, CNOOC dropped 1.60% to HK$9.86 on weaker oil prices, among the top five drags on the share market.
Meanwhile, real estate stocks surged in Shanghai. Huayuan Property jumped by its 10% daily limit to 7.35 yuan and Beijing Vantone Real Estate surged 8.12% to 6.79 yuan.
Construction material stocks also rose on the mainland, with Fujian Cement soaring by its 10% daily limit to 10.44 yuan and Ningxia Building Materials spiking 8.52% to 12.99.
