Hong Kong shares post best day in 7 weeks, oil sector supports

SHANGHAI: Hong Kong shares had its best daily gain since early September, underpinned by a rally in U.S. shares and optimism the Chinese government will roll out more stimulus to prop up growth.

The Hang Seng Index closed up 1.4 percent at 23,403.97 points, its biggest daily rise since Sept. 3.

The China Enterprises Index of the leading offshore Chinese listings in Hong Kong rose 1.5 percent.

The October HSBC/Markit flash China Purchasing Managers’ Index (PMI) is due on Thursday. If factory activity shows signs of slowing, Beijing may introduce additional stimulus measures to bolster growth, analysts said.

Oil firms were the biggest gainers. Sinopec ended up 1.5 percent, China Oilfield Service Ltd. rose 2.8 percent and PetroChina surged 3 percent.

Technology shares rallied on the back of strong performances  in U.S. peers. Analysts said reports that Tencent Holdings would set up a cross-border online trading platform with a Taiwan company, pushed its shares up by 3.4 percent.

Chinese electric carmaker BYD Co Ltd posted its biggest rise in two months after the Chinese government said it would promote wider adoption of new energy vehicles for public transportation to tackle pollution in northern China.

Source: APP