Hong Kong stocks rose for a second day, amid speculation China’s central bank will cut interest rates this month, and as leaders of the Group of Seven economies agreed to coordinate their response to Europe’s financial crisis.
Shimao Property Holdings Ltd. (813), a developer that gets all its revenue from mainland China, gained 4.8 percent. Esprit Holdings Ltd. (330), a clothier that counts Europe as its biggest market, climbed 2.5 percent. HSBC Holdings Plc, a lender that gets about a fifth of its revenue from North America, rose 1.8 percent after a report showed the U.S. services industry grew faster than expected.
The Hang Seng Index advanced 1.2 percent to 18,470.69 as of 1:03 p.m. local time, with about seven stocks rising for each that fell in the 49-member gauge. The Hang Seng China Enterprises Index (HSCEI) of mainland stocks, known as the H-Share index, gained 0.3 percent to 9,428.15.