Hong Kong Stocks Rise Third Day on Earnings, Fed Taper Outlook

Hong Kong stocks rose for a third day as earnings at China Petroleum & Chemical Corp. and Haitong Securities Co. improved and investors await the outcome of the Federal Reserve’s policy meeting concluding today.

China Petroleum, Asia’s largest refiner, climbed 2 percent after reporting yesterday a 20 percent jump in third-quarter net income, beating estimates. Haitong Securities added 1.1 percent as quarterly profit at the mainland’s No. 2 brokerage more than doubled. Chow Tai Fook Jewellery Group Ltd., the world’s largest listed jewelry chain, rose 1.3 percent after saying first-half profit probably increased on strong sales.

The Hang Seng Index (HSI) gained 0.6 percent to 22,983.59 as of 9:53 a.m. in Hong Kong, with almost six shares rising for each that fell. The Hang Seng China Enterprises Index (HSCEI) of mainland companies traded in the city added 0.7 percent to 10,460.02. The Fed will maintain its $85 billion in monthly bond-buying at the end of today’s meeting and may delay its first stimulus reduction until March, according to economists surveyed by Bloomberg.

The Hang Seng Index fell 0.1 percent this month through yesterday. Hong Kong’s benchmark equity gauge traded at 10.9 times estimated earnings yesterday, compared with 16 for the Standard & Poor’s 500 Index.

Futures on the S&P 500 were little changed today. The gauge yesterday added 0.6 percent to a record as earnings from Pfizer Inc. to Xylem Inc. beat estimates and data indicating slower growth fueled bets the Fed will maintain stimulus.

(Source: Bloomberg)