Shares rise, but gains far smaller than in China

June 1, 2015 7:14 AM

China's main indexes jumped nearly 5 percent, as investors were encouraged by market-friendly commentary in official media, and also took a positive view on PMI data showing growth in China's giant factory sector edged up to a six-month high in May.

Shares rise, but gains far smaller than in China

Hong Kong stocks rose on Monday, taking cues from a surge in Chinese shares, but the gains were capped by Friday's sluggish U.S. market after disappointing U.S. economic data.

China's main indexes jumped nearly 5 percent, as investors were encouraged by market-friendly commentary in official media, and also took a positive view on PMI data showing growth in China's giant factory sector edged up to a six-month high in May.

But Hong Kong's gain were far smaller, which China Investment Securities (HK) attributed to Friday's fall on Wall Street after data showed the U.S. economy contracted in the first quarter.

The Hang Seng index rose 0.6 percent, to 27,597.16, while the China Enterprises Index gained 1.4 percent, to 14,299.45 points.

Most sectors in Hong Kong were firmer, with industrial and and material stocks taking the lead, but consumer services shares lost 0.8 percent.

Shares in Huatai Securities Co Ltd ended up 5 percent in their Hong Kong debut on Monday, as investors bet that China's biggest broker by trading volume would continue to benefit from a boom in the country's stock markets.