Hong Kong stocks rally most in six weeks as developers rebound
Hong Kong stocks climbed the most in six weeks, led by financial companies and casino operators, as investors speculated US monetary policy will remain accommodative and recent equity losses were excessive.
The Hang Seng Index closed 1.6 percent higher, after touching its lowest level since Sept 1 on Monday. A gauge of real estate companies rallied the most among industry groups after slumping 8 percent from last month's high, with China Overseas Land & Investment Ltd climbing the most since June. The Shanghai B-share index added 2.6 percent after plunging the most in nine months in the previous session.
The Bloomberg Dollar Spot Index extended Monday's retreat from a seven-month high after data showed New York manufacturing unexpectedly shrank and US factory output barely grew. A rally in Hong Kong's benchmark index ran out of steam in the past month as the gauge struggled to climb above 24,000, traders boosted bets on higher US borrowing costs and a flood of money from mainland funds into the city's shares slowed to a trickle.
