November 11, 2010 (Chinavestor) Chinese indices rose sharply in Asia thanks to sound performance of energy and financial stocks. Oil jumped over $88/barrel in Asia on low U.S. stocks, starting speculations about an inevitable gasoline price increase. The Shanghai Composite Index (SHA:000001) surged 32.4 points or 1.0% while the Hang Seng Index (INDEXHANGSENG:.HSI) advanced 199.7 points or 0.8%. Key stocks of the day included Petrochina Co. Ltd. (NYSE:PTR), China's largest oil producer, and China Petroleum & Chemical Corp., known as Sinopec, (NYSE:SNP), Asia's largest refiner. CNOOC Ltd. (NYSE:CEO), China's offshore oil specialist shined as well.
The surge of Petrochina Co. Ltd. (SHA:601857) was so impressive that it became the best performing stock among the 50 largest components of the Shanghai Composite Index (SHA:000001). Petrochina's 7.7% advance was followed closely by another energy giant, China Petroleum & Chemical Corp. (SHA:600028). Another iconic energy stock, the largest Chinese coal miner China Shenhua Energy (SHA:1088), surged 2.5%. All three energy majors made it to the best five stocks among the 50 largest Shanghai listings.
Ping An Insurance (SHA:601318) advanced sharply in both Shanghai and Hong Kong. Its H-shares (HKG:2318) surged 4.7%, making it the best performing component of the 42 member Hang Seng Index (INDEXHANGSENG:.HSI). H-shares of CNOOC Ltd. (HKG:0883) rose 3.4%, the best among energy majors, with Petrochina (HKG:0857) right on its back with a 3.3% surge. Sinopec Corp. (HKG:0386) advanced 2.8% in Hong Kong.
But autos fell both Asian markets. Brilliance China Auto (HKG:1114) tumbled 6.5%, the most among components of the Hang Seng Index (INDEXHANGSENG:.HSI), while BYD Company (HKG:1211), a Warren Buffet backed electric battery and car maker, shed 1.9%. SAIC Motor (SHA:600104), the largest car maker in China, shed 0.2%.
Ping An Insurance (HKG:2318) was the best performing component in Asia of the iShares FTSE/Xinhua 25 Index ETF (NYSE:FXI). China Unicom (NYSE:CHU), Petrochina Co. Ltd. (NYSE:PTR) and CNOOC Ltd. (NYSE:CEO) all shined.
Looking at components of the Guggenheim Small Cap China ETF (NYSE:HAO), United Enegy (HKG:0467) was the best component of the ETF but Ports Design Ltd. (HKG:0589) fell hard.
Asian indices rose sharply thanks to higher energy and commodity prices, but European stocks gave up all early morning gains as the G-20 convenes. If components of the Shanghai Composite Index (SHA:000001) and the Hang Seng Index (INDEXHANGSENG:.HSI) were proxies for Chinese ADRs, outlook is the brightest for CNOOC ltd. (NYSE:CEO) and Petrochina Co. Ltd. (NYSE:PTR) among energy stocks. Investors should do well with China Petroleum & Chemical Corp. (NYSE:SNP) and Yanzhou Coal (NYSE:YZC), too. China Unicom (NYSE:CHU) shined in Hong Kong but China Mobile (NYSE:CHL) fell as rotation within the sector closed a recently developed price gap between the two.