Hong Kong: Shares at 28-month highs as China metal shares rally

[HONG KONG] Hong Kong shares rose on Wednesday, with the benchmark index hovering around 28-month highs, as shares of Chinese metal producers continued to rally.

The Hang Seng index rose 0.3 per cent to 28,127.80 points, while the China Enterprises Index gained 0.4 per cent to 11,173.51.

Gains in the broader market were capped by caution ahead of a US Federal Reserve policy decision later in the day. The Fed is widely expected to keep rates unchanged after a two-day meeting but could begin paring its massive bond holdings, with reductions likely to start in coming months.

But the raw materials sector jumped nearly 4 per cent as commodity prices rose on expectations that China's sweeping anti-pollution campaign would continue to push up prices of metals such as steel, aluminium and lead.

Property shares dipped, however, as investors took profits on recent gains, and after China's central bank said late on Tuesday it supports a move by some banks to increase mortgage rates in the Beijing market.

REUTERS