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By ELAINE KURTENBACH,AP Business Writer AP - Wednesday, March 18SHANGHAI - Asia's stock market rally seemed to be running out of steam Wednesday, despite an
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HK stock index rebounds to end 3.3 pct higher
AP - 2 hours 1 minute ago
HONG KONG - Hong Kong's main stock index recovered from steep early losses Friday to finish more than 3 percent higher after several commercial banks cut interest rates in a sign the territory's credit markets continue to thaw.
The blue-chip Hang Seng Index, down more than 3 percent in the morning, climbed 453.39 points, or 3.3 percent, to 14,243.43.
Analysts pointed to interest rate cuts by HSBC Holdings, Standard Chartered and local banks as a catalyst _ the result of recent softening in interbank rates amid persistent liquidity injections from central bankers.
"It gave the market a reason to head back to positive territory," said Linus Yip, a strategist at First Shanghai Securities. "The market thinks the lower rates would help relieve the credit tightening."
Rebounds in the stock markets of mainland China and South Korea also boosted sentiment.
The interest rate cuts helped lift developers, with the territory's leading property company Sun Hung Kai up 6.2 percent to 69 Hong Kong dollars and Cheung Kong adding 5.3 percent to HK$79.2.
Chinese banks advanced. Top lender Industrial & Commercial Bank of China Ltd, or ICBC, rose 3.1 percent to HK$3.72, and China Construction Bank climbed 5 percent to HK$4.03
Lenovo Group, the world's fourth-largest PC maker, tumbled more than 10 percent after posting a 78 percent dive in quarterly profits as the global economic slowdown battered sales.
Hong Kong's interbank lending rate, known as Hibor, for three-month loans ratcheted down from 2.44 to 2.24, its lowest since September.
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Stock Exchange of Hong Kong: http://www.hkex.com.hk
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