Summary Shanghai closed 2.17 percent higher
HONG KONG (AFP) - Hong Kong stocks rallied for an eighth straight session Monday, as mainland investors kept flocking to the city and more weak Chinese data fanned hopes of extra economy-boosting measures.
The benchmark Hang Seng Index climbed 2.73 percent, or 743.95 points, to 28,016.34 -- its best finish since December 2007. Turnover was HK$263.64 billion ($34.02 billion), the second highest ever.
Shanghai closed 2.17 percent higher.
China s customs administration said exports fell an unexpected 15 percent year-on-year in March, while imports tumbled 12.7 percent, the latest round of figures showing the world s number two economy is struggling.
However, investors took the news as a cue to pump even more cash into equities, expecting China s leaders to unveil more easing measures on top of the two interest rate cuts since November and a reduction in the amount of cash banks must keep in reserve.
Premier Li Keqiang s suggestion in March, that the government was willing to step in to prevent growth from slowing too much, has provided plenty of buying incentive.
Hong Kong has been blazing along -- adding almost 15 percent in eight sessions -- since mainland authorities last month expanded the number of fund-management firms allowed to buy in the city. The move has spurred mainlanders to make the most of a link-up between the Hong Kong and Shanghai stock exchanges.
And Nader Naeimi, Sydney-based head of dynamic asset allocation at AMP Capital Investors, told Bloomberg Television: "What we saw last week is likely to continue."
Adding to buying sentiment was a rally Friday on Wall Street, where the Dow climbed 0.55 percent, the S&P 500 rose 0.52 percent and the Nasdaq gained 0.43 percent.
Among Monday s best performers, Hong Kong Exchange and Clearing surged 19.44 percent to HK$297.40 -- the stock has almost doubled in value since Wednesday thanks to the huge turnover flowing through the market.
Tencent jumped 5.38 percent to HK$170.50, HSBC gained 1.45 percent to HK$70.20 and Lenovo added 3.26 percent to HK$13.30.
In mainland China the benchmark Shanghai Composite Index jumped 87.41 points to 4,121.72 -- its highest since March 11, 2008 -- on turnover of 781.7 billion yuan ($127.3 billion).
The Shenzhen Composite Index, which tracks stocks on China s second exchange, rose 1.80 percent, or 38.62 points, to 2,187.73 on turnover of 638.8 billion yuan.
"The weak trade data again raised market expectations for more monetary easing policies,"Zheshang Securities analyst Zhang Yanbing told AFP.
The market also climbed on news that the government will now allow individual investors to open up to 20 stock trading accounts, from just one, according to the China Securities Depositary and Clearing Co.
Banks were among the biggest gainers. In Shanghai, industry giant ICBC rose 4.31 percent to 5.32 yuan and China Construction Bank jumped 7.09 percent to 6.95 yuan.
Railway infrastructure companies advanced in Shanghai. China Railway Construction surged 8.33 percent to 19.64 yuan and China Railway Erju added 5.14 percent to 24.13 yuan.
