Hong Kong, Nov 10: Hong Kong stocks closed sharply higher on Wednesday,helped by a rally in Japan, optimism about Sino-US talks on China's bid tojoin the World Trade Organisation (WTO) and generally improved sentiment.The blue chip Hang Seng Index closed up 305.84 points or 2.24 per cent at13,975.54 on respectable turnover of HK$10.73 billion (US$1.38 billion), upfrom HK$7.70 billion on Tuesday.It was the index's highest close in just under four months--it closed at13,980.93 on July 13.
But analysts and traders said the rally was thinly based, and revolvedaround heavyweights like HSBC, China Telecom (Hong Kong) Ltd, Cable &Wireless HKT and Hutchison Whampoa Ltd.
"They're only buying four stocks," said Celestial Asia Securities stockmarket analyst William Li, adding that after several days of losing ground,Hutchison was gaining.
"Yesterday, it was three (stocks). Today Hutchison has joined the fray,"said South China Securities director Howard Gorges.
Traders said the market spiked after lunch, helped by a sharply higher Tokyomarket.
The Nikkei 225 closed up 275.71 points or 1.51 per cent at18,567.87 onWednesday, its best close in more than two years, inspiring the localmarket. "The Japan story has got everyone excited," said Credit Suisse FirstBoston head of Asian sales trading Jonathan Gurnsey.
Li said he believed there were virtually no sell orders in the market whentrading resumed after lunch, and traders said liquidity was improving."There's fresh money coming in," said Gurnsey. Helped by WTO hopes, the redchip index was up 42.99 points or 4.11 per cent at 1,089.42, while theH-share index was up 24.27 points or 4.80 per cent at 530.02.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.