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HK stocks recover on US, EU hopes

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advance8 November 28, 2011 (Chinavestor) China stocks advanced in Hong Kong on Monday. The Hang Seng Index (INDEXHANGSENG:.HSI) advanced 348.3 points or 1.9% following strong Black Friday sales in the U.S. and hopeful signs that European leaders can avoid a major currency meltdown. Investors remained cautious in Shanghai lifting the benchmark index a mere 2.8 points or 0.1%.

Most components of the Xinhua China 25 Index advanced in Hong Kong, boding well for the iShares FTSE/Xinhua China 25 Index (NYSE:FXI), the most liquid Chinese ETF. China stocks hit a month low last Friday as fears of a global economic recession hit home. But positive sales and political news helped improve investor sentiment in Asia and Europe.

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