HONG KONG: Hong Kong stocks rose, headed for the third day of increase this week, amid speculation China will take more action to bolster growth and after new housing starts in the US jumped to the highest since 2008.
Bank of Communications Co., China's fifth-largest bank by value, rose 1.9%. Cnooc Ltd., China's No. 1 offshore oil producer, climbed 2.6% as crude traded near a seven-week high. Li & Fung Ltd., a supplier to Wal-Mart Stores Inc., advanced 1.6% for a fourth day of gain.
The Hang Seng Index advanced 1% to 19,438.44 at 9:46 a.m., with five companies climbing for each that dropped in the 49-member gauge. The Hang Seng China Enterprises Index of mainland companies rose 1.5% to 9,430.75.
The benchmark Hang Seng Index fell 11% from this year's high in February through yesterday on signs Europe's debt crisis is worsening while growth slows in China and the US The drop cut the value of shares on the gauge to 10.2 times estimated earnings on average, compared with 13.2 for the Standard & Poor's 500 Index and 10.9 for Stoxx Europe 600 Index.
Futures on the Hang Seng Index gained 1.3% to 19,455. The HSI Volatility Index fell 1.5% to 19.17, indicating traders expect a swing of about 5.5% in the benchmark index during the next 30 days. (Bloomberg/T07/aph)
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