Hong Kong Shares May Start Higher After Summers Pulls Out Of Fed Race
HONG KONG, Reuters

Hong Kong shares could start the week stronger on Monday, taking their cue from gains in regional stock markets after Lawrence Summers dropped out from the race to head the U.S. Federal Reserve.

A likely uptick in mainland China markets could further underpin sentiment, particularly after the country’s securities regulator told a regular news briefing after markets shut last Friday that it would support banks issuing preferred shares and that any “qualified” Chinese company is eligible.

The Hang Seng Index closed down 0.2 percent at 22,915.3 points on Friday, rising 1.3 percent on the week. The China Enterprises Index of the top Chinese listings in Hong Kong sank 0.9 percent, but climbed 2 percent last week.

Shares rallied in Asia on Monday after Summers’ surprise decision, as investors wagered that Fed policy would stay easier for longer under the other main candidate, Janet Yellen.

Around 0051 GMT, South Korea’s KOSPI was up 1 percent and Australia’s S&P/ASX index added 0.7 percent. Markets in Japan were closed for a holiday.

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