Hong Kong: Shares have solid rise as markets welcome higher oil prices

[HONG KONG] Hong Kong stocks climbed on Monday, led by energy plays, as investors took cues from recovering oil prices and rebounding global equity markets.

The market also benefited from a more stable currency market, after Beijing intervened to stem further slides in the offshore yuan and the Hong Kong authorities expressed confidence about defending Hong Kong dollar's peg to U.S. dollar.

The Hang Seng index rose 1.4 per cent, to 19,340.14, while the China Enterprises Index gained 0.8 per cent, to 8,173.11 points.

Hao Hong, managing director of research at BOCOM International in Hong Kong, said a technical reprieve in the near term is possible, "but the bearish trend is yet to end, as fundamentals can deteriorate further".

He said the Hang Seng is likely to make a second low after a reprieve - similar to its experience in 1997-98.

All main indexes rose in Hong Kong on Monday, with an index tracking energy shares jumping 3 per cent.

REUTERS