HK Stocks Rebound Over 13,000 Level

The Hang Seng Index rebounded from early losses to regain the 13,000 level Wednesday, after Hong Kong Chief Executive Donald Tsang said the government may take more measures to help revive the economy.

The Hang Seng Index rose 70.60 points, or 0.6 percent, to 13, 016.00, after falling as low as 12,712.33 intraday.

Turnover rose to 42.81 billion HK dollars (5.53 billion U.S. dollars) from 41.73 billion HK dollars (5.39 billion U.S. dollars) on Tuesday.

Traders said they expect the blue chip Hang Seng Index to be volatile and trade in a range as wide as 12,000-14,000 for the rest of the month, as the global economic environment will likely remain uncertain.

The Hong Kong government will take further measures if it sees major stress in the banking and business sectors or in the employment market, Tsang said at a news conference during a three-day trip to Japan.

Some of Hong Kong's property stocks fell, as a rising local jobless rate will likely deter people from buying homes. Hang Lung Properties fell 3.1 percent to 14.28 HK dollars, Henderson Land was down 1.2 percent at 25.30 HK dollars, and Wharf Holdings slid 0.4 percent to 16.72 HK dollars.

Hong Kong's unemployment rate rose to 4.6 percent in the three months ending on Jan. 31, the highest in nearly two and a half years. Tsang said the increase was more than the Hong Kong Special Administrative Region government had expected, and will likely rise further. Residential property prices in Hong Kong have fallen about 20 percent since the second half of 2008. (1 U.S. dollar = 7. 7475 HK dollars)

Source:Xinhua