For the second consecutive day, as manufacturing across China continued to grow at its fastest pace in 18 months for November, stocks in Hong Kong's market rose. Also, the fact that worries about Dubai's financial woes have eased helped the stocks rise.
The country's third largest producer of copper, Zijin Mining Group Co. rose by 6.5%, and the China Eastern Airlines Corp. recorded a 5.9% growth. Both the stocks were boosted by prospects of future endeavors. China Construction Bank Corp. gained 2% as well, after it was established that its involvement in the Middle East would not have much impact on the firm.
"Positive news from China should partially offset the negative news from Dubai but its reasonable for investors to take some money off the table. The Dubai situation has more implications. We are not sure when the next shoe will fall", shared Pauline Dan, Hong Kong- based Chief Investment at Samsung Investment Trust.
The benchmark Hang Seng index surged by 1.3% to close at 22,113.15 points, in addition to gaining 3.3% yesterday as well. Shares in the index managed to trade at "17.4 times estimated earnings".