HONG KONG, Sept 27 – Hong Kong shares surged 4.15 percent Tuesday as global markets rebounded from huge recent losses on bargain buying, with traders hopeful EU leaders will plot a way out of its debt crisis.
The benchmark Hang Seng Index jumped 722.75 points to end at 18,130.55 on turnover of HK$71.36 billion ($9.16 billion).
The index’s rise was the biggest in percentage terms since a 5.3 percent gain in May 2009 and came after it had lost 8.5 percent in the previous four sessions.
Global markets have posted strong gains on bargain buying amid hopes European leaders could reach agreement on containing the eurozone crisis, which has put Greece on the verge of default.
There are many fears that if the problem continues much longer the global economy could slip into another financial crisis.
Ben Kwong, chief operating officer of KGI Asia Ltd, said: “Market sentiment is still very weak and investors’ confidence remains fragile. Any gains could easily be wiped out if uncertainties about the eurozone debt crisis resurface.”
Insurer Ping An jumped 10.1 percent to HK$46.80, after a near 14 percent decline Monday.
Bank ICBC rose 9.1 percent to HK$4.20, after it said Tuesday it plans to raise more than $10 billion by selling bonds to boost its capital base over the coming nine months.
Chinese e-commerce portal Alibaba.com jumped 12.9 percent to HK$7.25 and retailer Belle advanced 6.2 percent to HK$13.38.
Chinese shares closed up 0.91 percent. The Shanghai Composite Index, which covers both A and B shares, was up 21.87 points at 2,415.05 on turnover of 55.3 billion yuan ($8.7 billion).
“Investors are looking at the rescue policy which will be issued on Thursday to ease Europe’s debt crisis — this could support the market temporarily,” Zhang Yanbin, an analyst at Zheshang Securities, told AFP.
Ping An advanced 1.8 percent to 35.00 yuan and China Pacific Insurance gained 1.1 percent to 18.85 yuan.
Property developers advanced despite ratings agency Standard & Poor’s saying many Chinese property companies could face weaker sales and tighter credit conditions over the next six to 12 months.
Poly Real Estate rose 0.7 percent to 9.16 yuan while China Vanke edged up 0.3 percent to 7.17 yuan.