Hong Kong stocks advanced Wednesday as solid earnings from leading phone company China Mobile Ltd. lifted market sentiment.
The blue-chip Hang Seng Index climbed 408.06, or 1.9 percent, to 21,464.72. The market touched new yearly lows last week.
China Mobile, the world's biggest phone company by subscribers, reported a 45 percent jump in first-half net profit on strong consumer demand and favorable tax changes.
The results helped boost investor optimism about the region's companies in the face of worsening global economic conditions, analyst said.
"That helped the market have a good move, it's helping the market to stabilize" after recent sharp declines, said Linus Yip, a strategist at First Shanghai Securities in Hong Kong.
Gains in the market, which was also helped by the settling of futures contacts, were widespread.
Financials were higher, with Chinese Construction Bank up 2.3 percent to HK$6.37 and Standard Chartered adding 2.5 percent to HK$204.2. Chinese insurer China Life soared another 4.9 percent to HK$29.85 a day after posting better-than-expected results.
Also joining the rally was Aluminum Corp. of China, boosted by a report about a possible joint venture between its parent and Rio Tinto. The company, also known as Chalco, rose 6.3 percent to HK$7.29.
Shippers gained, with China COSCO up 8.2 percent to HK$15.78 on strong earnings results.
____
On the Net:
http://www.hkex.com.hk
