Jan 6 Hong Kong shares extended gains to end
firmer on Friday, scoring its best week in three months, as
capital outflow worries eased after the U.S. dollar took a
breather from its post-election rally.
The benchmark Hang Seng index finished 0.2 percent
higher, at 22,503.01 points, bringing its weekly gain to nearly
2.3 percent, the highest since Oct. 7.
The Hong Kong China Enterprises Index gained 0.1
percent, to 9,611.05 points.
Traders attributed the market's bounce the previous session
to a pullback in the dollar after the Federal Reserve's minutes
signalled a more prudent stance to interest rate hikes rather
than a surge in offshore yuan.
A pause in the U.S. dollar's rise offered some solace to
Asian stocks, which were under pressure in December on worries
about capital flowing out of emerging markets amid hopes of
faster U.S. growth.
The dollar index, which tracks the greenback against
six major world currencies, hit a low of 101.37 in early trade,
around 2.4 percent down from an intraday high set on Tuesday.
Reflecting less investor anxiety in the city, the HIS
Volatility Index, a gauge of market stress, lost 18.5
percent from a high set on Dec. 28.
Sector performance was mixed in Hong Kong.
The energy sector gave back some early gains and
added nearly 0.5 percent at the close, with weakness in mainland
miners offsetting the bullish effect from recently stronger oil
(Reporting by Jackie Cai and John Ruwitch; Editing by