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Hong Kong: shares at 4-month high, aided by strong commodities
[SHANGHAI] Hong Kong shares closed at a four-month high on Monday, underpinned by the materials sector following a rally in commodities prices and thanks to capital flows from the mainland.
The Hang Seng index rose 0.6 per cent to 23,710.98 points, its highest close since Oct 11. Meanwhile, the China Enterprises Index gained 1.3 per cent, to 10,257.84 points, its highest since end-November 2015.
Resources stocks rallied, led by copper producers, as prices of the metal surged after BHP Billiton declared force majeure due to a strike at the world's biggest copper mine in Chile.
The market was also supported by rising southbound inflows through the Shanghai-Hong Kong Stock Connect, which used 24 per cent of Friday's daily quota, compared with an average of less than 11 per cent in January.
Most sectors gained ground, led by materials and industrials, while property developers contracted 0.4 per cent after hitting a nearly 3-1/2-month high in the previous session.
Shares of Geely Automobile Holdings Ltd jumped 6.9 per cent to an all-time high on news it would join the Hang Seng Index as a constituent on March 6.