Hong Kong Stocks Surge As Asian Buyers Return

Hong Kong stocks surged more than 2 percent by the break on Tuesday, after last week's heavy losses and following a strong lead from Europe and New York.

The Hang Seng Index rose 2.2 percent, to 30,102.

On the mainland, the benchmark Shanghai Composite Index rose 1.8 percent, to 3,210, while the Shenzhen Composite Index climbed 1.3 percent, to 1,746.

Equity markets rallied on Tuesday as a semblance of stability returned after last week's turmoil. Tokyo, which was closed Monday for a public holiday, jumped 1.3 percent by the break.

Seoul and Singapore were each up more than one percent while Sydney put on 0.5 percent. Jakarta, Manila and Kuala Lumpur were also well up.

On currency markets the more positive mood supported high-yielding units over those considered safe bets, with the Australian dollar, South Korean won, Thai baht and Mexican peso all higher against the greenback.

However, the South African rand was being sold on political uncertainty with local media reporting the ruling ANC had decided to remove scandal-tainted President Jacob Zuma as head of state. (AFP)

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