Hong Kong stocks surge, China Mobile leads
(For Shanghai stock market reports, click [.SS]) (Updates to close)
By Judy Hua
HONG KONG, March 25 (Reuters) - Hong Kong stocks surged across the board on Tuesday, tracking Wall Street gains on improved investor confidence after JP Morgan (JPM.N) raised its offer for Bear Stearns BSC.N.
Blue chips jumped 6.43 percent, the biggest one-day percentage rise in two months, led by heavyweight China Mobile (0941.HK) after it gained a record number of subscribers in February.
Mainland financials and airlines rebounded sharply, helping the China Enterprises index of H shares .HSCE, or Hong Kong-listed shares in mainland companies, recover 8.22 percent to end at 11,727.00.
"Investors are now pretty desperate to look for some positive indicator," said Ben Kwong, associate director of KGI Asia Ltd. "But the fundamentals have not changed too much. It is just market sentiment."
"There is a chance that the market could do a bit better in April and May after the significant correction in the first quarter," he added.
The benchmark Hang Seng Index .HSI closed 1,356.30 points higher at 22,464.52.
Mainboard turnover was HK$100.6 billion (US$12.9 billion) compared with HK$83.3 billion on Thursday, the last trading day before the Easter Holiday break.
China Mobile (0941.HK) jumped 8 percent to HK$112.50 after the world's largest wireless carrier gained nearly 8 million subscribers in February, while smaller rival China Unicom (0762.HK) soared nearly 10 percent to HK$17.24 after it added 1.5 million new subscribers last month.
Fixed-line operator China Netcom (0906.HK) rose 9.6 percent despite reporting a 6.7 percent fall in 2007 earnings.
AIRLINES JUMP
Industrial & Commercial Bank of China (1398.HK), the world's biggest bank by market value, rose 8.6 percent to HK$5.20 ahead of its results announcement. After the market closed it announced a 65 percent rise in its 2007 net profit to 81.5 billion yuan, edging out the average forecast of 80.5 billion yuan.
Bank of China (3988.HK) rose 7.3 percent ahead of its results announcement.
Chinese airline stocks jumped on expectations that Taiwan would lift a ban on direct flights between mainland China and the island after the opposition Nationalist Party, which favours closer trade ties with the mainland, won Taiwan's presidential election.
Flag carrier Air China (0753.HK) jumped more than 15 percent to HK$6.91, China Eastern (0670.HK) rose 7.3 percent and China Southern (1055.HK) rose 11 percent.
Top Chinese chipmaker Semiconductor Manufacturing International Corp (0981.HK) soared as much as 24 percent before closing up 16 percent at HK$0.53, after it said it was in advanced negotiations with a strategic investor on buying shares or convertible instruments of the company. It said no agreement had yet been reached.
China Life Insurance Co (2628.HK), the country's biggest life insurer, vaulted 9.5 percent following news that it had invested $300 million in Visa Inc's (V.N) initial public offering in its maiden overseas investment. (US$1=HK$7.8) (Reporting by Judy Hua; Editing by Edmund Klamann)
