HONG KONG: Hong Kong stocks ended 0.19 percent higher Wednesday on hopes for an end to Greece’s debt row with its creditors after it emerged the new government would apply for an extension to its bailout.
The benchmark Hang Seng Index rose 47.20 points to 24,832.08 on turnover of HK$28.93 billion ($3.73 billion).
Investors went into the two-day Lunar New Year holiday on a high after Greek public television said Tuesday Athens would ask for the further aid but would not sign up to the austerity measures it imposed on the country.
The change of heart will ease fears that the country will run out of cash when the current lifeline runs out at the end of the month — causing it to default on its debt obligations and more than likely crash out of the eurozone.
Buying was also boosted by another record close in New York Tuesday. The S&P 500 climbed 0.16 percent to a second straight all-time high in two sessions, while the Dow added 0.16 percent. The Nasdaq was up 0.11 percent.
Energy firms climbed after the Wall Street Journal, citing unidentified officials, reported that China was considering merging state-owned oil companies to raise competitiveness.
Among plans being looked at, it said, was a combination of China National Petroleum Corp. and Sinopec as well as a tie-up between CNOOC and Sinochem Group.
Sinopec jumped 4.65 percent to HK$6.52, while CNOOC gained 2.71 percent to HK$11.38. PetroChina Co. rose 3.10 percent to HK$8.98.
Among other firms China Unicom climbed 1.23 percent to HK$13.14, Cheung Kong gained 0.13 percent to HK$1.52 and Cathay Pacific was up 0.35 percent at HK$17.18.
Shanghai was closed for the New Year holiday.
