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Hong Kong: Stocks up for 3rd day

Thursday, December 8, 2016 - 16:28

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[HONG KONG] Hong Kong stocks rose for the third straight session on Thursday, drawing some support from Wall Street although demand was tempered by weakness in mainland shares after China's falling foreign exchange reserves deepened capital outflow concerns.

The benchmark Hang Seng index pared some early gains and added 0.3 per cent at the close, to 22,861.84 points, while the Hong Kong China Enterprises Index gained 0.7 per cent, to 9,896.82 points.

Wall Street surged overnight, with the Dow Industrials and S&P 500 both hitting fresh records, extending their gains since Republican Donald Trump's victory in the US presidential vote last month.

Still, the upside was limited by a softer close for mainland shares after China's foreign exchange reserves fell far more than expected in November to the lowest level in nearly six years.

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The reserves data also seemed to have offset any enthusiasm from solid trade numbers for the world's second-biggest economy.

Most sectors in Hong Kong rose, with industrial and resource shares leading the gains.

Trade remained thin as investors were looking ahead to the outcome of a European Central Bank policy meeting later in the day.

There's speculation the ECB may widen the type of bonds it buys, while analysts also suspect it may start preparing investors for an eventual tapering of its stimulus.

REUTERS

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