Hong Kong stocks rose as developers advanced and exporters got a lift from U.S. jobs data. Gains were limited as the city’s benchmark index traded near a 19- month high, fueling speculation shares are overbought.
Li & Fung Ltd., a Wal-Mart Stores Inc. supplier, increased 1.7 percent. China Overseas Land & Investment Ltd. gained 2 percent after Deutsche Bank AG added the developer to a buy list. Henderson Land Development Co. climbed 2.1 percent after a report its chairman said he expects the city’s property prices to rise. Belle International Holdings Ltd. declined 2.5 percent after the shoemaker’s shares rose to a record last week.
The Hang Seng Index rose 0.2 percent to 23,376.05 as of 10:49 a.m. in Hong Kong, trading about 0.1 percent from its highest since June 2011. The Hang Seng China Enterprises Index of mainland companies rose 0.3 percent to 11,874.07.
“Since the Asia-Pacific region provide better growth opportunities, funds will still be rotating into this region,” said Jackson Wong, vice president at Hong Kong-based brokerage Tanrich Securities Co. “Funds are rotating into second-tier stocks or lagging stocks such as properties, shale gas and coal.”
The Hang Seng Index (HSI) advanced 12 percent from the end of September through Jan. 4 as signs of accelerating growth in China lured money made available by global central-bank easing. The gauge traded at 11.4 times estimated earnings on average, compared with 13.1 for the Standard & Poor’s 500 Index and 11.9 for the Stoxx Europe 600 Index, according to data compiled by Bloomberg.
Futures on the S&P 500 slid 0.1 percent today. The measure gained 0.5 percent on Jan. 4 as employers added more workers while the jobless rate held at a level that’s unlikely to hasten the end of Federal Reserve stimulus.
Futures on the Hang Seng Index gained 0.4 percent to 23,381. The HSI Volatility Index rose 2.6 percent to 15.26, indicating traders expect a swing of 4.4 percent for the equity benchmark in the next 30 days.
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