December 2, 2010 (Chinavestor) Both key Asian markets for Chinese stocks headed north Thursday morning as investor optimism got contagious from the U.S. The Shanghai Composite Index (SHA:000001) advanced 20.2 points or 0.7% while the Hang Seng Index (INDEXHANGSENG:.HSI) surged 199.0 points or 0.8%.
Key ADRs from Asia on Thursday include Huaneng Power International (NYSE:HNP), oil giants CNOOC Ltd. (NYSE:CEO) and Petrochina Co. Ltd. (NYSE:PTR), and China Eastern Airlines (NYSE:CEA) to the upside. But Yanzhou Coal (NYSE:YZC), China's third largest coal producer fell.
Looking at key Chinese ETFs ahead the open, outlook is bright for iShares FTSE/Xinhua China 25 Index (ETF) (NYSE:FXI) given most of her components surged in Asia this morning.
Power generators led the rally in Hong Kong as investors began bargain hunting. Huaneng Power Holdings (HKG:0902), the largest independent power producer, surged 6.8%. Datang Power (HKG:0991) was the best performing component of the 42 member Hang Seng Index (INDEXHANGSENG:.HSI) with a similar surge. CNOOC Ltd. (HKG:0883), China's offshore oil specialist, rose 3.2%.
But what was good for power companies was bad for coal miners, sending the sector to a tailspin. China Shenua Energy (HKG:1088), the largest coal miner of the country, fell the most among components of the Hang Seng Index (INDEXHANSENG:.HSI). Yanzhou Coal (HKG:1171), the third largest coal miner, fell 3.2% while China Coal (HKG:1898) shed 4.4%.
Investors embraced financial and resrouce stocks in Shanghai sending the Shanghai Composite Index (SHA:000001) higher for the day. China Construction Bank (SHA:601393) and ICBC (SHA:601398), two of the four largest banks in China, surged. But manufacturers fell on worsening export outlook as troubles for the Euro pressured the greenback and the Yuan. GD Power Development Company (SHA:600795), China South Locomotive (SHA:601766) and SAIC Motor Co (SHA:600104) were all among the worst five stocks from the 50 largest components of the Shanghai Composite Index (SHA:000001).
All but three components of the 25 member iShares FTSE/Xinhua China 25 Index (ETF) (NYSE:FXI) advanced in Asia this morning. The layout was similar to that of the Hang Seng Index (INDEXHANGSENG:.HSI): power generators, financial stocks rose but coal shares plummeted.
Index futures point to a higher open in the U.S. as world stocks rose in Asia and Europe. If components of the Hang Seng Index (INDEXHANGSENG:.HSI) can serve as a proxy for ADR trading, outlook is bright for Huaneng Power International (NYSE:HNP) along with oil producers from the energy sector. CNOOC Ltd. (NYSE:CEO), China's offshore oil specialist and Petrochina Co. Ltd. (NYSE:PTR), China's largest oil producer, are all looking good before the open. Bottom fishing helped China Eastern Airlines (NYSE:CEA) in Hong Kong, a similar move is expected on the NYSE today. But Yanzhou Coal (NYSE:YZC), the only large Chinese coal miner listed on the NYSE, is hurting possible pressuring Puda Coal (NASDAQ:PUDA) along the way.