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Hong Kong, Singapore jump
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November 23, 1998: 4:56 a.m. ET
Rate cut hopes drive up Hong Kong while overseas funds take Singapore higher
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LONDON (CNNfn) - Hong Kong stocks rocketed 2.75 percent Monday after banks cut interest rates Friday and the market expected more cuts. Singapore was close behind as overseas fund managers took the Straits Times index 2.15 percent higher.
Stronger global markets boosted confidence. Europe's major markets closed sharply higher Friday, but it was Wall Street's close within 200 points of its all-time high that was the major international influence.
Most regional markets rallied. Japan was closed for a Labor day holiday.
Indonesia led the way with a 5.29 percent rise. Australia jumped almost 2 percent, while Malaysia, the Philippines and Thailand closed more than 3 percent higher.
Only Taiwan and Korea posted losses.
Hong Kong's Hang Seng index finished 2.75 percent higher, up 281.7 points, at 10,514.53.
Hong Kong banks cut interest rates by 25 basis points after the market closed Friday and, as expected, banks and property stocks led the advance Monday.
Heavyweight HSBC Holdings jumped 5.9 percent, adding HK$11 to HK$196. Hang Seng Bank was up HK$1.75 at HK$68.75.
Cheung Kong added 1.31 percent to HL$58 while Sun Hung Kai Properties was up 3.15 percent art HK$57.25.
But despite a successful weekend of sales, Sino Land finished even at HK$3.85.
"It may not be long before we see another interest rate cut and this could account for the follow-through buying we are seeing today," said South China Brokerage vice-chairman Howard Gorges.
For a change, China-related stocks bucked the trend. Red chips fell 1.69 points, or 0.16 percent, to 1,067.97 points. H shares lost 4.89 points, or 1.04 percent, to 467.23 points.
Overseas fund buying again pushed Singapore higher. The Straits Times index ended up 29.04 points, a rise of 2.15 percent to 1,376.94.
Singapore Press Holdings was up S$1.5 at S$18, smashing its high for the year. Multimedia firm Creative Technology was up S$1.7 at S$27.7. Jardine Matheson -- Hong Kong's oldest hong, or trading company -- surged 34 cents to S$3.74.
"Wall Street was strong on Friday -- that fueled some of the rise," said Salomon Smith Barney research director Lim Jit Soon. He said property stocks and banks remained positive. "Ffalling interest rates and the perception that the property market in Singapore has bottomed out boosted these stocks," he said.
Australia finished 44 points higher at 2,747.6. Stocks were led by the largest local listed company, News Corp., which added 51 cents to A$11.21.
On the other markets, Indonesia shined, closing 5.29 percent higher. The Philippines climbed 4.37 percent with Thailand following close behind, up 4.97 percent. Malaysia added 3.38 percent.
Taiwan and Korea both eased about 0.75 percent by their closes.
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