Hong Kong shares close up, Fed keeps rates steady

Hong Kong - Hong Kong stocks rose on Friday after the US Federal Reserve held off from raising interest rates, citing concerns about global economic weakness.

Because its currency is pegged to the US dollar, interest rates in the financial centre have to follow those set by the Fed, even if their economic trends may be diverging.

The Hang Seng index rose 0.3% to 21 920.83 points, while the China Enterprises Index gained 0.6% to 10 028.38.

For the week, the Hang Seng rose 1.9%, but trade was choppy, reflecting big swings in mainland China markets and uncertainty over whether the Fed would raise rates on Thursday for the first time in nearly a decade.

Most sectors rose, with property and materials shares especially strong. Rate-sensitive property developers were also supported by data showing home prices in China rose for the fourth straight month.

But services and energy lost ground.

Shares of Hong Kong-listed Biostime International Holdings jumped 19.6% to their highest since July 24, after the dietary supplements maker said on Thursday it would buy Australian vitamin maker Swisse Wellness for about A$1.4bn.