Hong Kong shares surge on stimulus moves

December 8th, 2008 - 6:06 pm ICT by IANS  

Barack ObamaHong Kong, Dec 8 (DPA) The benchmark Hang Seng index surged 8.66 percent Monday to its highest level in seven weeks amid investor confidence of stimulus moves by China and the United States.Turnover topped 63.87 billion Hong Kong dollars ($8.19 billion), following Friday’s turnover of 37.3 billion Hong Kong dollars.

Among the biggest gainers was Cosco Pacific, the Chinese ports operator, which surged 22.8 percent to close at 7 Hong Kong dollars.

Local property company Henderson Land closed at 28 Hong Kong dollars, a 16.18 percent increase on the day.

Analysts said market sentiment was driven by investor optimism that China would announce further measures to boost domestic consumption and that a US plan to bailout car giants would succeed.

China announced a four trillion yuan ($586 billion) infrastructure spending package Nov 9 that was intended to increase domestic demand.

US president-elect Barack Obama signalled plans last weekend for the largest investment in public works since the development of the interstate highway system in the 1960s and 1970s.

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