Hong Kong Stocks Rise on U.S. Data; Sinopec Declines

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Hong Kong stocks rose, with the benchmark index heading for a second weekly advance, on U.S. manufacturing beat. China Petroleum (386) & Chemical Corp. slid, paring gains on a gauge of mainland shares listed in the city.

Citic Telecom International Holdings Ltd. advanced 5.4 percent, headed for a 25 percent weekly increase after reporting this week its full-year profit more than doubled. Tencent Holdings Ltd. climbed 2.8 percent, leading gains on the Hang Seng Index. China Petroleum, also known as Sinopec, sank 1.3 percent after surging yesterday by the most since December 2008.

The Hang Seng Index added 0.7 percent to 22,559.68 as of 10:55 a.m. in Hong Kong, poised for a 1.2 percent increase this week. About three stocks gained for each that fell on the 50-member gauge today. TheHang Seng China Enterprises Index (HSCEI), also known as the H-share index, added 0.3 percent, paring an advance of as much as 1.3 percent. Shares fell yesterday after a Chinese manufacturing gauge slumped to a seven-month low.

“The market atmosphere is good today, lifted by the U.S. manufacturing data after disappointing numbers from China,” said Sam Chi Yung, a strategist at Delta Asia Securities Ltd. There’s uncertainty ahead of HSBC Holdings Plc’s earnings announcement on Feb. 24, he said.

Market Performance

Hong Kong’s benchmark gauge is down 3.9 percent this year through yesterday, the second-worst performer among 24 developed markets tracked by Bloomberg, paring losses amid record new credit in China and improving trade data. The H-share gauge dropped 7.8 percent for the period and traded at 6.6 times estimated earnings yesterday, compared with its five-year average of 10.

Futures (SPX) on the Standard & Poor’s 500 Index added 0.2 percent today. The measure gained 0.6 percent yesterday after the Markit Economics preliminary index of U.S. factory activity rose to 56.7 and Labor Department figures indicated fewer applications for unemployment benefits last week. Facebook Inc.’s $19 billion purchase of messaging service WhatsApp Inc. fueled optimism about deals.

Department-store operator Parkson Retail Group Ltd. (3368) slumped 6.1 percent to HK$2.30 after full-year net income tumbled.