April 7, 2011 (Chinavestor) China stocks were looking for direction in Asia on Thursday, sending the Hang Seng Index (INDEXHANGSENG:.HSI) sideways for the day. The Shanghai Composite Index (SHA:000001) rose a mere 6.7 points or 0.2% while investors digested interest rate hikes in the eurozone and fuel price increases at home.
Upstream oil companies advanced on fuel price increase in Hong Kong, making Shanghai Petrochemical (HKG:0338) the best performing component of the 42 member Hang Seng Index (INDEXHANGSENG:.HSI). Sinopec (HKG:0386), the largest refinery in Asia by volume, rose 1.4%.
Market was looking for direction on the mainland as well. Stocks that advanced were just about the same as those that fell out of the 50 largest components of the Shanghai Composite Index (SHA:000001). Zijin Mining (SHA:601899), the largest gold miner in China, continued to shine as investors trimmed risk. Goldman upgraded the real estate sector on outlook, sending China Vanke (SHE:200002), the largest property developer in China, soaring 4.2% for the day.
Most large cap stocks fell in Hong Kong as components of the iShares FTSE/Xinhua 25 China Index (NYSE:FXI) testify. Stock that fell outnumbered those that advanced 3 to 1 among components of the most liquid Chinese ETF.
Small caps did better in Hong Kong for most components of the Guggenheim Small Cap ETF (NYSE:HAO) rose for the day.