Jan 10 Hong Kong stocks hit a one-month high on
Tuesday as Chinese commodity prices rallied, offsetting pressure
from profit taking in some state-owned enterprises (SOEs) which
rose last week on restructuring hopes.
The Hang Seng index rose for a fourth consecutive
session, ending up 0.8 percent to 22,744.85 points, while the
Hong Kong China Enterprises Index gained 0.6 percent to
Shanghai futures contracts for rebar and coking
coal surged around 7 percent and 9 percent on the day,
respectively, as China's state planner said the steel and coal
sectors will face increasing pressure to cut capacity this year.
Earlier in the day, data showed China's producer prices
surged the most in more than five years in December, compared
with a year earlier, as a construction boom boosts demand for
building materials from cement to steel.
Capacity cuts have also fueled the spike in commodity
prices, boosting profits.
Most sectors were up, but telecommunications and
energy fell as investors took profits on sharp gains in
index heavyweights China Mobile and CNOOC Ltd
seen last week.
Shares of Chinese retailer Intime Retail Group
soared more than 35 percent on news that e-commerce giant
Alibaba Group Holding Ltd was seeking to take Intime
(Reporting by Jackie Cai and John Ruwitch; Editing by Kim