Finance stocks push Hong Kong market higher Singapore index down

Finance stocks continued to prop up the Hong Kong stock market which showed gains of around 58 points around midday. Bank stocks seem to be in favour as investors anticipate and look to the reporting season in the US with JP Morgan’s results expected tonight.

Bank of China Hong Kong gained the most up 2.94% to HKD28.05, with all four Chinese major banks trading higher. Retailer giant Esprit Holdings, which generates most of its profits from Europe, also gained 0.7% after easing concerns on European debt crisis.

The Hang Seng index has been on an upward trend for most of trading session in the past three weeks on the back of improved economic condition in the US and debt condition in Europe.

The Straits Times index was trading lower at mid day after the Singapore government raised the sales tax as well as the initial deposit for second mortgage property in Singapore in order to curb property prices.

Investors are dumping property stocks with City development and Capitaland, both local property developers, shedding 4.4% and 3.39% respectively.

Financial stocks also weakened on the back of the news fearing that banks’ housing loan books might be affected. OCBC, UOBH and DBS were all down on the day.

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