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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 stocks rise after China moves to boost spending
AP - 2 hours 6 minutes ago
HONG KONG - Hong Kong's key stock index recovered 2 percent Monday after China announced plans to boost consumer spending and the U.S. renewed hopes of rescuing its troubled auto industry.
The Hang Seng Index rose 288.56 to 15,046.95 points, though closed well off its highs.
The benchmark plunged Friday after the U.S. Senate blocked a bailout plan for struggling American carmakers.
But news the U.S. Treasury Department was ready to assist the companies instead, possibly tapping a $700 million financial crisis fund, relieved many investors worried about the companies' fate, analysts said.
Also driving Monday's gains was a weekend announcement that Beijing will increase the amount of money circulating in the economy next year so consumers spend more.
China's latest stimulus plan seemed to counter gloomy figures released Monday about its waning factory output.
"This plan is triggering buying in the market," said Alex Tang, head of research at Core Pacific-Yamaichi. "Following the introduction of quite a few measures ... we are going to see better performance in terms of equities."
Telecoms pared some of their losses from Friday, with index heavyweight China Mobile adding 3.2 percent to 81 Hong Kong dollars.
As prices for oil, metals and other raw materials rose, so did resource firms and the shippers that transport their goods.
Angang Steel, China's No. 2 steel maker, rose 4.1 percent to HK$7.34. China Cosco Holdings, the country's biggest shipping conglomerate, closed 6.6 percent higher at HK$5.65.
Hong Kong's de facto central bank, meanwhile, made several injections into the currency market to defend its currency's peg against the dollar. The greenback had weakened against the Hong Kong dollar.
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Stock Exchange of Hong Kong: http://www.hkex.com.hk
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