MARKET TALK: HSI +1.3% Midday; Weak PMI Fuels Policy Hopes

2nd Aug 2010 05:45

0445 GMT [Dow Jones] HSI +1.3% at 21,304.20 midday, rising for 9th session out of 10, as weak China July PMI (CFLP and HSBC) fuel expectations Beijing may ease on policy tightening; H-shares outperforming, +1.9% midday. Volume modest at HK$32.74 billion, next technical gap 20,500. Taifook Securities tips "a broad-based rally is in the making" as rotational buying witnessed while consolidation of leading stocks takes place. 41 of 43 blue chips higher; those rising more than 2.0% include China Overseas Land (0688.HK), PetroChina (0857.HK), China Shenhua (1088.HK), China Resources Land (1109.HK), Foxconn (2038.HK), BOC HK (2388.HK), Bank of Communications (3328.HK) -- bulk of which are China plays. HSBC (0005.HK) +1.2% at HK$95.00, Hang Seng Bank (0011.HK) +0.7% at HK$108.30, before 1H results due after market close.([email protected]) Contact us in Singapore. 65 64154 140; [email protected] (END) Dow Jones Newswires August 02, 2010 00:45 ET (04:45 GMT)