HONG KONG, Oct 3: ong Kong shares rebounded further from three-week lows early on Thursday, lifted by the Macau casino and Chinese consumer sectors on hopes that the ongoing Golden Week holiday in the mainland will generate healthy revenue.
China’s official purchasing managers index (PMI) for the non-manufacturing sector came in at 55.4, its highest since March, further buoying market sentiment as benchmark indexes recover steep losses earlier this week.
At midday, the Hang Seng Index, which had closed on Monday at its lowest since Sept. 9, was up 1 percent at 23,207 points. The China Enterprises Index of the top Chinese listings in Hong Kong climbed 1.5 percent.
Hong Kong markets were shut on Tuesday for China’s National Day holiday, while the mainland will reopen Oct. 8.
Gains on the day came in lacklustre turnover, pointing at underlying caution as the US government shutdown dragged on, but helped both indexes recover steep losses on Monday as the third quarter came to a close.
‘Monday’s dip at quarter-end was irrational to begin with, so we’re seeing a recovery of that move down. Of course, there’s the good services PMI, but gains are coming in weak turnover,’ said Hong Hao, chief strategist at Bank of Communications International Securities.
Hong added that the Hang Seng benchmark could return to 2013 highs in February at about 24,000 by year’s end, but is unlikely to break out of chart resistance at about 25,000 without a dramatic turnaround in China’s economy.
That level was recorded in November 2010 and remains the highest the index has reached for more than seven years.
On Thursday, Macau casinos were lifted by a strong start to the Oct. 1-7 National Day holiday. Sands China jumped 3.2 percent and Galaxy Entertainment 3 percent, to hit respective record highs.
(agencies)
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