Hong Kong shares rose to another more than 10-month high for the third consecutive session Wednesday, boosted by Wall Street's rise overnight due to improved economic data and the possibility the U.S. Federal Reserve may opt to renew its purchases of U.S. Treasury bonds at its next board meeting in early November.

The blue-chip Hang Seng Index rose 241.27 points, or 1.07%, to close at 22,880.41, a new high for the year and its highest closing level since hitting 22,914 on Nov. 17, after trading between 22,872.42 and 23,023.13. The index has risen 2.3% in the past three sessions.

Market volume jumped to HK$104.80 billion, up from HK$79.69 billion Tuesday.

Analysts said the market will likely sustain its upward momentum this week because of the high trading volume, though the index may face resistance at 23,099 as profit-taking sets in.

'Trading sentiment remains strong as funds continue to favor equity markets on expectations of possible further quantitative easing in the U.S.,' said Daniel So, an analyst at Sun Hung Kai Financial in Hong Kong,

Linus Yip, a strategist in First Shanghai Securities, said he expects the index to trade in a 24,000-25,000 range by the end of 2010.

'Strong liquidity is expected to support buying interest in the Hang Seng Index,' Yip said, adding the index is now trading at 14.5 times forward earnings, which he described as reasonable.

The Dow Jones Industrial Average rose 1.8% to 10945 Tuesday, its highest close since May 3, because of stronger-than-expected U.S. services sector data and Chicago Federal Reserve President Charles Evans' call for the Fed to do more to charge up the economy, including a new round of quantitative easing and possibly a declaration that it wants inflation to rise for a time beyond its informal 2% target.

In Hong Kong, New World Development was the best-performing blue-chip, rising 4.9% to HK$16.70 after it announced a more than five-fold increase in net profit for its last fiscal year to HK$11.61 billion from HK$2.08 billion a year earlier.

Bourse operator Hong Kong Exchanges ended up 0.2% at HK$160.00 due to the increase in market volume.

Gold firms ended higher after spot gold hit a new record high in early Asian trade, touching $1,344.20 per troy ounce before pulling back later in the day to $1,343.90 per troy ounce, up $3.30 from its New York close on Tuesday.

Zhaojin Mining jumped 3.0% to HK$25.85, while Real Gold rose 3.4% to HK$14.52.

Core Pacific-Yamaichi analyst Keith Lo said he believes Zhaojin will be a major beneficiary of higher gold prices.

Hong Kong stocks opened higher on Thursday, saw the highest gains of 116 points, test the 23,000 level, however saw selling pressure at high level. Hang Seng Index closed at 22,884, inched up 4 points, the low and high amplitude was only 172 points. H-share index closed at 12,738, dropped 34 points. Market turnover slight retreated to HK$80.3bn. Two newly listed IPO performed mixed, SUNAC (1918) closed 3.1% lower that is IPO price of HK$3.48, investors concern the mainland property tightening policies. On the other hand, Trony Solar, investors hot pick, opened at 5.85, and closed at HK$5.07, which is 12.7% higher than its IPO price of HK$4.5. Saw fund buying laggard plays, Chinese banks performed strong in early session but followed by heavy profit taking selling pressure. On the other hand, buying interest on alcohol plays, Dynasty Wines (828) and Silver Base(886) gained 17.3% and 5% respectively, both broke record high.

Hong Kong shares extended their winning streak to a fifth session Friday, ending at a more than two-year high as the local market tracked gains in mainland China.

The blue-chip Hang Seng Index rose 59.86 points, or 0.26%, to close at 22,944.18, its highest closing level since 23,087 on July 24, 2008. It traded between 22,861.15 and 23,093.77. ]

Market volume stayed strong at HK$86.58 billion, up from HK$80.26 billion Thursday.

The index has risen in 22 out of the past 26 trading sessions for a cumulative gain of 11.7%, as concerns over a double-dip in the global economy have eased, while expectations the Federal Reserve will launch a second round of quantitative easing drove liquidity into equity markets.

Analysts said they expect the market to consolidate in the near term, but that any retreat is unlikely to be significant, with 22,000 a strong support.

'The property tightening measures just announced in Shanghai...may be taken as an excuse for the market to correct,' said Castor Pang, a research director at Cinda International.

The local market was boosted by Shanghai's 3.1% rise to 2,738.74 on the first day of trading after China's week-long National Day holiday, as stronger commodities prices sent metals and mining firms soaring.

Esprit was the best-performing Hong Kong blue chip Friday, rising 4.4% to HK$44.80 after Goldman Sachs lifted the target price of the stock to HK$57 from HK$55.

'With macro, inventory cycle bottoming out, euro shifting to a tailwind, and execution upside from a greatly strengthened team, we see risk reward in Esprit as attractive,' Goldman said in a report Friday.

Mainland property firms fell after Shanghai became the latest city in China to take further measures to slow surging real-estate prices and curb property market speculation, by limiting households in the municipality to buying only one additional home and raising developers' land-appreciation tax.

China Overseas Land was down 0.5% at HK$16.80 and China Resources Land was 0.4% lower at HK$16.16, though some mainland China-listed developers rose Friday to play catch-up to the gains in global equities markets over the past week when China markets were closed.

'We maintain our view that there is no need to rush into the sector at this stage' due to expectations for more tightening measures in China, said UOB KayHian analyst Sylvia Wong, who advised investors to 'look to accumulate the quality names' when share prices come down.

Zijin Mining surged to a near 10-month high after it resumed trade Friday, rising 12.4% to HK$7.42, because the CNY9.56 million fine imposed on China's biggest gold producer by output over a toxic chemical leak wasn't as high as analysts predicted.

HK Stock Market Retreated After Recent Rally
Local market opened 46 points lower on Tuesday and recorded the largest drop of 152 points, Hang Seng Index closed 85 points lower to finish the day at 23,121. H-share index added 27 points to 12,979. Market turnover shrank to HK$83.1bn. MTR (0066) has seen buying interest which rose 3.2%. Chinachem Group has won the bid for the Kowloon Tong Site at HK$1.63bn, higher than market expected, with average land cost of nearly HK$18,000 per square feet, higher than market expected, the news triggered its underlying company ENM (0128) and Dan Form (0271) surged 11.9% and 9.7% respectively. Some mainland lenders who are requested by the PBOC to increase the Reserve Requirement Ratio temporarily were soft. Evergrande (3333) advanced 13.3% as its accumulated contract sales for the first nine months of the year achieved 89% of the yearly target

Mzee Young,

Is the world stock market still wobbling? When are we likely to see sanity?