Hong Kong Stocks Rise In Overnight Trading To New High On Optimism Of Global Recovery

Hanny Wan of Bloomberg in article Hang Seng Stock Exchange Rises to Highest Since May 2008, writes that the Hong Kong Stocks, ^HSI, EWH, rose,  extending the benchmark index’s gain to its highest level in more than two years, after a report last week showed the U.S. added more jobs than estimated, fueling optimism in a global economic recovery. (Shares traded at 24, 964.37 on November 8, up from October 14, 2010 at 23,852.17 when the Interest Rate on the 30 Year US Government bond, began to rise strongly).

HSBC Holdings, HBC, Europe’s biggest bank, declined 1.6 percent after saying profit growth slowed. (HBC closed at 55.55 on November 5, 2010)

The Hang Seng Index gained 0.4 percent to 24,964.37, its highest close since May 22, 2008. That boosted the measure’s 14- day relative-strength index, which has been above 50 since Sept. 2, to 77. That’s above the 70 threshold that some traders use as an indicator to sell. The gauge fell as much as 0.6 percent today.

The main Hang Seng Index has gained 14 percent this year on expectations that growth in corporate earnings will weather concerns about the pace of the U.S. economic recovery and China’s steps to curb rising property prices. Shares in the gauge trade at an average 15.8 times estimated earnings, compared with about 17.2 times at the start of the year.

Commentary

At the time of writing of this blog entry, that is 7:20 AM EST, the EUR/JPY, is trading at 112.81, with the day’s range so far at 112.67 to 114.18; this is down from yesterday’s close at 114.16, this is a 1.14% decline in value of the EUR/JPY.

The German Stock Exchange, the DAX, ^GDAXI, is trading down 0.06%, t0, 6748.51 from its November 5, 2010 value of 6,754.20.

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