HONG Kong's stocks climbed yesterday, pushing the benchmark index to a one-week high, led by developers, after Goldman Sachs & Co raised its rating on Sun Hung Kai Properties Ltd to "buy" and after the city's jobless rate stayed at the lowest in a decade.
Sun Hung Kai, the city's biggest developer by market value, jumped the most in 11 weeks on speculation that unemployment at a decade low will help sustain real estate demand. China Petroleum & Chemical Corp, Asia's largest oil refiner, soared the most in three months after a Chinese central government official said the central government will use "prudence" in raising fuel prices.
"Sun Hung Kai is one of the best-managed Hong Kong property developers," said Andrew Sullivan, a sales trader at Mainfirst Securities Hong Kong Ltd. The outlook is good "with Hong Kong's unemployment at a 10-year low," he said.
Hong Kong's benchmark Hang Seng Index rose 267.81, or 1.2 percent, to 23,325.80, its highest close since June 11, Bloomberg News said.
The Chinese mainland's CSI 300 Index advanced 5.2 percent to 2,991.27, rising for the first time in 11 days on speculation that the central government will intervene to support the market following its 10-day 22-percent rout.
Record price
The gauge had fallen 50 percent from its record high on concern that central bank measures to fight rising inflation will erode earnings growth.
The Chinese mainland rally helped boost Ping An Insurance (Group) Co, China's second-largest insurer, by 3.1 percent to HK$61.25, its highest close since June 6. Bank of Communications, part-owned by HSBC Holdings Plc, added 1.8 percent to HK$9.46.
Sun Hung Kai added 3.6 percent to HK$118.40, its biggest rise since April 2. Goldman lifted its rating on the firm to "buy" from "neutral," the broker said.
Separately, Sun Hung Kai sold an apartment at its Arch project in Hong Kong for a record price per square foot for Asia, Sing Tao Daily said. The 5,497-square-foot penthouse was sold for HK$225 million (US$29 million), the newspaper reported.