Hong Kong shares end up 2.7 pct on easier lending in China; Sensex regains 10K
The Nikkei is closed today for a holiday... Hong Kong shares rose 2.7% on Monday, with Chinese counters leading the charge after a central bank official indicated Beijing had eased lending restrictions, but the main index closed off highs in a late bout of profit taking. State media also quoted a central bank spokesman as saying the People's Bank of China must flexibly adjust its economic policies, including monetary policy.
China has cut interest rates three times in six weeks after a series of tightening measures earlier to rein in runaway inflation. The benchmark Hang Seng Index closed up 375.70 points at 14,344.37 in a strong start to a month investors hope will bring stability to the market after it posted its worst monthly drop in more than a decade in October. The index had rallied to 14,889.13 earlier.
The Sensex opened with a significant positive gap of 421 points at 10,209 on the back of rate cut by the Reserve Bank of India over the weekend. The RBI on Saturday announced a 100 basis points cut in cash reserve ratio, a 50 basis points cut in repo rate and also reduced the statutory liquidity ratio by 100 basis points.
Some profit-taking in intra-day trades saw the index touch a low of 10,113. The index, however, moved back to higher levels led by solid gains in realty, capital goods and banking stocks. The Sensex touched a high of 10,363, and finally ended with a gain of 550 points at 10,338.
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