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Hong Kong: Shares join regional rally sparked by Fed's remarks

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[HONG KONG] Hong Kong shares joined nearly all regional markets in rising on Thursday after the Federal Reserve indicated it won't start raising US interest rates for some time.

The Hang Seng index gained 1.5 per cent to 24,468.89, while the China Enterprises Index climbed 1.2 per cent, to 12,122.20 points.

Analysts said a delay in a US rate hike benefits Hong Kong stocks. As the Hong Kong dollar is pegged to the US dollar, interest rates in the city tend to follow those set by the Fed.

Among the most actively traded stocks on Hong Kong's main board were Landing International, up 0.6 per cent to HK$0.16; China National Culture Group, up 14.2 per cent to HK$0.15 and Bank Of China, up 0.5 per cent to HK$4.44.

Total trading volume of companies included in the HSI index was 1.6 billion shares.

REUTERS