Hong Kong Stocks Rise Before China GDP Data; Casinos Drop
Hong Kong stocks rose, with the city’s benchmark index climbing from its biggest drop in almost a month, before China’s economic growth data is released today. Casinos slid on a report high-end betting in Macau may slow.
The Hang Seng Index gained 0.4 percent to 22,759.14 as of 9:32 a.m. in Hong Kong after retreating 1.6 percent yesterday. The Hang Seng China Enterprises
China’s economy probably grew an annualized 7.3 percent in the first quarter, according to the median estimate in a Bloomberg News survey, down from 7.7 percent in the three months through December. Reports on retail sales and industrial production are also to be released today. Data yesterday showed new credit fell in March from a year earlier and money supply expanded at the slowest pace on record.
The Hang Seng Index (HSI) is up 2.4 percent this quarter through yesterday, the top performer for the period among developed markets after being the second-worst the previous quarter, on speculation China will add stimulus to counter a slowdown that threatens its 7.5 percent growth target. The equity gauge traded at 10.3 times estimated earnings yesterday, compared with 15.7 times for the Standard & Poor’s 500 Index.
Futures on the S&P 500 rose 0.2 percent today. The U.S. equity gauge rose 0.7 percent yesterday as earnings from Coca-Cola Co. and Johnson & Johnson outweighed concerns that tensions in Ukraine are worsening. Technology shares continued their rebound after hours when Yahoo Inc. and Intel Corp. posted favorable results.
China Southern Airlines Co. dropped 2 percent. The nation’s third-largest carrier estimated a loss in the first quarter, compared with a profit in the same period last year, citing a weaker yuan for foreign-exchange losses.