Hong Kong stock surges after holidays

Hong Kong stock closed more than one percent higher on Friday (October 15), as investors returned from holidays catching up with the global rebound driven by a good start of the corporate earnings season. 

The Hang Seng Index soared 1.5 percent, or 368 points to 25,330 after recovering from a day low of  24,929 in early trade. 

The Hang Sang TECH Index climbed 1.92 percent, or 119.16 points to 6,318.91 at the close with Tencent soaring 2 percent and Meituan increasing 4 percent. 

The Hang Seng Index climbed 2 percent or 493 points this week, which was shortened to three trading days due to a typhoon and the Chung Yang Festival holiday.

The US unemployment claims released overnight also encouraged stock buyers in Hong Kong. The number fell to 293,000 last week, the lowest level since the pandemic began.  

The Shanghai Composite Index increased 0.4 percent or 368 points to 3,572. 

In China, the restrictions of home loans in some of the biggest banks were removed on Friday, which also boosted Asian stocks. 

Although the latest move is beneficial to developers, it is unlikely to solve their liquidity problems, head of China and Hong Kong research at CGS-CIMB Securities Raymond Cheng told Bloomberg.   

Chinese property stocks bucked the market trend and were lower on Friday. China Overseas Land lost 3.57 percent and China Resources Land was lost 1.71 percent.