Hong Kong’s benchmark stock index on Friday closed at its highest level in nearly 10 years, supported by Chinese automakers and banks.
The Hang Seng Index rose 0.3 percent to end at 28,458.04 points, its highest close since late 2007.
The index rose 3.3 percent on the week, its biggest such gain in 12 weeks.
The Hong Kong China Enterprises Index on Friday rose 0.5 percent to end at 11,459.09 points, its highest close since mid-2015. It ended up 5 percent for the week, the best in six weeks.
The MSCI Asia Pacific Index on Friday climbed 0.3 percent to 163.31, up 1.3 percent from last week’s 161.17.
The weighted index on the Taiwan Stock Exchange on Friday closed up 14.54 points, or 0.14 percent, at 10,532.81. The index gained 1.4 percent from last week’s 10,383.94.
In Hong Kong, Chinese automakers remained strong, with Geely Automobile Holdings Ltd (吉利汽車) surging 5.6 percent to a record high, BYD Co (比亞迪) rising 2 percent and Dongfeng Motor Group Co (東風汽車) gaining 1.3 percent.
Chinese banks also extended gains, still basking in the glow of the Chinese central bank’s announcement on Saturday last week that it is cutting the amount of cash that some banks must hold as reserves for the first time since February last year to encourage more lending to struggling smaller companies.
Analysts said the reduction in the reserve requirement ratio should support banks’ net interest margins and profit growth next year.
Bank of Communications (交通銀行) rose 1.2 percent and Ping An Insurance (Group) Co (平安產險) was up 1.1 percent. Home builder China Vanke Co (萬科) climbed 1.3 percent.
However, Macau casinos stocks fell after the tourism bureau reported a 2 percent year-on-year fall in visitors during the first four days of China’s “Golden Week” national holiday.
Shares of Sands China Ltd (金沙中國) dropped 2.7 percent, Wynn Macau Ltd (永利澳門) fell 2.8 percent and Galaxy Entertainment Group (銀河娛樂) slid 1.9 percent.
China’s financial markets have been shut all this week for the holiday and are to resume trade tomorrow.
“Selling pressure is expected to dominate when China markets reopen on Monday,” Ample Finance Group director Alex Wong (黃國英) said. “Mainland investors will lock in gains after the recent rally of many Chinese shares before they look into the upcoming economic data due later this month. The market is expecting a healthy set of data anyway.”
Investors are also awaiting the 19th Chinese Communist Party Congress, which starts on Oct. 18. The twice-in-a-decade meeting is to see a key leadership reshuffle and the setting of top political and economic priorities for the next five years.
“The market doesn’t expect to see much excitement from the meeting, as maintaining stability is seen as a top priority,” Wong added.
In Japan, the TOPIX on Friday gained 0.3 percent, showing little impact from a proposal by the country’s key opposition party in the run-up to this month’s general election to consider taxing some retained earnings.
Australia’s S&P/ASX 200 Index rose 1 percent.
Additional reporting by CNA and Bloomberg
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