Shares surge on Hong Kong market

Shares in Hong Kong have been hitting new records recently

Shares of firms listed in Hong Kong surged after China said corporate investors could invest abroad.

The move is part of plans by China to reach overseas markets by investing some of its $2 trillion savings.

Shares in mainland Chinese firms listed in Hong Kong added 5%. The key Hang Seng index was up 2.6% to 20,990.62 points having topped 21,000 earlier.

Other Asian share markets also climbed as data showing economic strength in the US boosted Wall Street.

Impetus

"There's a bit of euphoria," said Andrew Sullivan, sales trading director at Daiwa Securities, following the gains in Hong Kong.

"This has given the market the impetus to move above 21,000".

Stocks which rose included China's leading aluminium firm Aluminium Corp, which added 9.5%, while Jiangxi Copper increased 11.5%.

China Mobile gained 5.7% while the strongest blue-chip player was Hong Kong Exchanges and Clearing, climbing more than 9%.

Other gains

Other gainers in Asia included Malaysia's benchmark index, up 0.86%.

Singapore's Straits Times index added 1.53%, with Singapore Airlines shares taking off as much as 4.9% after good earnings results.

Indonesian shares added 0.74%, just below a record high of 2,049.53 points set earlier in May.

Meanwhile in Japan, stronger-than-expected economic figures indicated that interest rates could be increased later in the year, sending the benchmark Nikkei index up by 1%.

Shares in exporters rose including car firm Toyota, which added some 3%, and Sony, up 1.5%.

Firms with strong overseas operations were boosted after US stocks recovered on Friday having fallen the previous session to two-month lows.

Sentiment on Wall Street got a boost from US Federal Reserve signals that it may consider reducing interest rates later this year.