October 6, 2010 (Chinavestor) China stock investors snapped up resource and commodity plays in Hong Kong on Wednesday, sending the Hang Seng Index (INDEXHANGSENG:.HSI) approaching the 23,000 level, as markets expect more central bank easing around the globe. Bank of Japan returned to the zero interest rate policy spurring economic growth suggesting smaller players are likely to follow. The Dow Jones Industrial Average (INDEXDJX:.DJI) advanced 193.5 points on Tuesday on improved economic outlook, helping Hong Kong based investors to grab the horn of the market.
Looking at NYSE-HKEx cross-listed blue chips, CNOOC Ltd. (HKG:0883) (NYSE:CEO), Yanzhou Coal (HKG:1171) (NYSE:YZC) and China Mobile (HKG:0941) (NYSE:CHL)were the best performing stocks with a 2.5%, 2.0% and 1.5% advance, respectively. But airliners fell on higher oil/kerosene prices, China Southern Airlines (HKG:1055) and China Eastern Airlines (HKG:0670) shed 1.7% and 1.0%, respectively. China Life Insurance (HKG:2628) gave back 0.9 percent after a 7% jump a day before.
China COSCO (HKG:1919) and China Shipping Development (HKG:1138) were among the bests performing components of the 42 member Hang Seng Index (INDEXHANGSENG:.HSI) as global trade prospects improved. Xinxin Mining (HKG:3833), a large non-ferrous metal miner, jumped 9.2 percent as commodity prices increased.
Dow Jones Industrial Average (INDEXDJX:.DJI) index futures point to a higher open suggesting improved outlook for energy stocks such as CNOOC Ltd. (NYSE:CEO), China's offshore specialist, and Yanzhou Coal Mining (NYSE:YZC), China's third largest coal miner. China Mobile (NYSE:CHL) is looking the best among Chinese telecoms; China Telecom (NYSE:CHA) actually fell in Hong Kong on Wednesday.