December 16, 2011 (Chinavestor) News that some banks lowered rates for first time home buyers in China sent stocks skyrocketing in Asia. The Shanghai Composite Index (SHA:000001) snapped a six day loosing streak and bounced off 2 year lows on Friday. All of the gains came in late afternoon in just one hour when speculations that the government will ease monetary tightening spread. Optimism carried over to Hong Kong as well where the Hang Seng Index (INDEXHANGSENG:.HSI) surged 258.6 points or 1.4% for the day. The index registered most of the gains in the last two hours of trading. Oversold China Eastern Airlines (HKG:0670) was the best NYSE cross-listed China stock in Hong Kong on Friday.
Shares of Huaneng Power International (HKG:0902) surged 5.3% as price of oil fell, improving margins for China's largest independent power producer. But oil producer CNOOC Ltd. (HKG:0883) fell and Petrochina Co .Ltd. (HKG:0857), the largest Chinese integrated oil company, advanced a mere 0.2%.