Economic data fuel HK shares, shipping plays leap

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By Rita Chang

HONG KONG, Feb 14 (Reuters) - Hong Kong stocks jumped more
than 3 percent on Thursday, marking their third-straight gaining
session after a surprise rise in January U.S. retail sales stoked
hopes that the world's biggest economy might escape a recession.

Investors also cheered data showing Japan's economy grew more
than twice as much as expected in the final quarter of 2007
[ID:nTKU003032], fuelling momentum in afternoon trade.

Shipping stocks, led by China COSCO (1919.HK: Quote, Profile, Research), also
registered hefty gains, pacing advances in the Baltic Dry Index
.BADI, an indicator for commodity freight rates. Progress in
negotiations for this year's iron ore supply also lent support.

Aluminum Corp of China (Chalco) (2600.HK: Quote, Profile, Research) rallied in heavy
trade amid talk that its parent, Chinalco, and Alcoa Inc (AA.N: Quote, Profile, Research)
may raise their stake in global mining company Rio Tinto (RIO.L: Quote, Profile, Research).

"The retail sales figures raised investor confidence," said
Castor Pang, strategist at Sun Hung Kai Financial. "The U.S.
economy is possibly stabilising."

But sceptics say they are not taking stock in the latest
data. "There's no commitment; everything's up on thin volume,"
said Miles Remington, sales and trading director at BNP Paribas.

"There's probably some short-covering. This is what's called
a bear market rally."

The benchmark Hang Seng Index .HSI closed up 3.7 percent,
or 852.13 points, at 24,021.68, reclaiming a spot above its
250-day moving average. The China Enterprises index of H shares
.HSCE, or Hong Kong-listed shares in mainland companies, gained
4.7 percent, or 601.61 points, to 13,550.99.

Mainboard turnover was HK$94.3 billion (US$12.1 billion),
beating Wednesday's HK$82.5 billion.

Chalco surged 9 percent to HK$13.36, fuelled by talk that its
parent, Chinalco, and Alcoa Inc (AA.N: Quote, Profile, Research), which have jointly bought
a 12 percent stake in Rio Tinto's London-listed shares (RIO.L: Quote, Profile, Research),
could raise their stake to as much as 20 percent, a move that may
help China's top alumina producer defend against high prices for
raw materials.

Among shipping stocks, China COSCO (1919.HK: Quote, Profile, Research) soared 10.1
percent to HK$23 in heavy trade.

Pacific Basin Shipping Ltd (2343.HK: Quote, Profile, Research) surged 5.5 percent to
HK$12.68. The dry bulk shipper said it had agreed to take over
re-sale contracts for two cargo vessels and had contracted two
more for US$375 million.

China Shipping Development Co Ltd (1138.HK: Quote, Profile, Research) vaulted 10
percent to HK$23.15, fanned by upbeat guidance for its domestic
coastal bulk carriers [ID:nHKG210620].

Among blue chips, global bank HSBC Holdings plc (0005.HK: Quote, Profile, Research),
the day's most active stock, shot up 3.4 percent to HK$116.2.

Angang Steel (0347.HK: Quote, Profile, Research) scurried up 10.8 percent to HK$16.56
as investors bet that China's third-biggest steel firm would
benefit from rebuilding efforts following severe weather that
inflicted damage in many parts of the country.

Top Chinese e-commerce firm Alibaba.com (1688.HK: Quote, Profile, Research) surged 4.7
percent to HK$19.96, boosted by a better-than-expected 79 percent
surge in quarterly profit by Chinese top search engine Baidu.com
Inc (BIDU.O: Quote, Profile, Research) [ID:nN13383445].
(US$1=HK$7.8)
(Editing by Anne Marie Roantree)