(For Shanghai stock market reports, click [.SS])
(Adds Thursday lunch close, details)
By Rita Chang
HONG KONG, Feb 28 (Reuters) - Hong Kong stocks erased early
losses to rise 1.3 percent on Thursday as a commodities rally
fuelled resource plays further, and refiner Sinopec Corp
(0386.HK) rose on talk that it may receive government subsidies
as oil prices break records.
Investors also bid up rate-sensitive Hong Kong property
developers, taking overnight comments by the U.S. Federal Reserve
Chairman to mean more interest rate cuts were in store.
"It's the same old thing," said Peter Lai, director at DBS
Vickers. "The market lacks direction and sentiment, and news like
Bernanke will drive the market. In the short-term, the market
will fluctuate a lot."
The benchmark Hang Seng Index .HSI had risen 1.3 percent to
24,799.68 by lunch. The China Enterprises Index of Hong
Kong-listed mainland companies .HSCE, or H shares, rose 2
percent to 14,212.75.
Mainboard turnover was HK$48.2 billion (US$6.2 billion),
compared to Wednesday morning's HK$57.5 billion.
Zinc producer Hunan Nonferrous Metals Corp Ltd (2626.HK) was
the top performer among resource shares after zinc shot up
overnight. Shares vaulted 5.1 percent to HK$3.89.
Gold plays were also higher after the yellow gold stayed near
record highs. Lingbao Gold (3330.HK) surged 4.7 percent to
HK$4.87 and Zijin Mining (2899.HK) leapt 3.4 percent to HK$10.94.
Sinopec jumped 4 percent to HK$9.11.
Aluminum Corp of China (2600.HK), the country's top alumina
producer, leapt 4.2 percent to HK$16.46 amid strained supplies.
Industry officials said China's recent snowstorms and power
outages may reduce primary aluminium output by about 600,000
tonnes this year, equal to 5 percent of the country's 2007 output
[ID:nHKG68298].
Shares in Hong Kong property developers also outperformed,
after U.S. Fed Chairman Ben Bernanke told U.S. lawmakers the
central bank would act in a timely manner to support growth
[ID:nN27381101].
The Hang Seng property subindex rose 2.8 percent.
Sun Hung Kai Properties (0016.HK) jumped 3.2 percent to
HK$143.20 in heavy trade. Cheung Kong (Holdings) Ltd (0001.HK)
climbed 3.4 percent to HK$122.40.
ASM Pacific Technology Ltd (0522.HK) climbed 3.2 percent to
HK$54.80 a day after reporting a 10 percent rise in 2007 net
profit and proposing dividend payments totalling HK$585.9 million
($75.13 million) [ID:nL27798370].
(US$1=HK$7.8)
(Editing by Anne Marie Roantree)
