Hong Kong stocks driven to two-week highs on earnings optimism as Ping An and HKEX advance
The Hang Seng Index rose 1.1 per cent to 17,018.98 as of 9.51am local time. The Hang Seng Tech Index gained 1.8 per cent and the Shanghai Composite Index was little changed.
Ping An Insurance advanced 1.5 per cent to HK$33.50 after growth in its new-business values, a gauge of future profitability, beat estimates in the first quarter. Hong Kong Exchanges and Clearings, the operator of the city’s bourse, added 1.2 per cent to HK$233.40 ahead of its earnings report later on Wednesday. Among the other prominent gainers, Alibaba Group Holding rallied 2.3 per cent to HK$71.40 and Tencent Holdings gained 1.9 per cent to HK$338.20.
“Life insurance business beat our estimates in terms of both profit and new business value,” said Nomura analysts after the earnings announcement in a note which raised its target price for the stock to HK$54.41, implying an upside of 62 per cent from the current levels.
Mobvoi, which makes speech recognition devices, declined 17 per cent from its IPO price to HK$3.15 on its trading debut in Hong Kong.
Other major Asian markets made gains across the board. Japan’s Nikkei 225 climbed 2 per cent, while South Korea’s Kospi advanced 1.8 per cent and Australia’s S&P/ASX 200 added 0.1 per cent.
