9:00AM New York, 9:00PM Hong Kong - Rising gold and oil prices lift Hong Kong stock average by 2.4%.

In Hong Kong trading Hang Seng index snapped a two-day decline to close up 2.4% or 632.41 to 27,519.69. Hang Seng China Enterprises index gained 2.8% to 15,903.40. For the week Hang Seng index edged up 0.5%.

About HK$5.6 billion worth of shares changed hands during today’s trading session.

Commodity and energy-related stocks rose after gold and oil increased to record highs. Gold reached $868.89 per ounce yesterday as a falling dollar and worries of inflation drove international investors to precious metals and other commodities.

Commodities also rose after CLAS said today investors should buy shares of Chinese gold and coal producers, as they are most likely to be cushioned from the Chinese government measures to prevent the economy from overheating.

CLAS further added that the telecommunications sector is further set to benefit in 2008 as there is likely to be a restructuring in the industry.

China coal rose 3.5% to HK$24 and Zhaojin mining climbed 7.1% to HK$37.05.

Zijin Mining jumped 7.2% to HK$13.44 after Goldman Sachs raised a target on the stock by 11% to HK$15.

A Hong Kong-based jeweler Hang Fung Gold Technology Ltd rose the most since June 2000 after saying it plans to sell a metric ton of gold this month. Stocks rose 26% to HK$2.51 as a result.

Crude oil for February delivery rose to $100.09 per barrel. Cnooc Limited rose 5.6% to HK$13.86 and Petroleum & Chemical Corporation rose 5.1% to HK$11.66.

Li & Fung Limited, which supplies goods to Wal-Mart, rose 3.2% to HK$31 after demand from the U.S. manufacturer rose more than forecasted in November.

Shanghai Securities news reported yesterday that China’s combined funds under management jumped from Rmb 879 billion in 2006 to Rmb 3.2 trillion at the end of 2007, spurred by stock market rise.

The value of assets at stock funds including closed end funds, nearly quadrupled to Rmb 2.5 trillion, accounting for 77% of the assets.

Bloomberg news reported today China National Materials Company, which is the world’s largest provider of cement-making equipment, managed last month to raise an extra HK$629 million by selling more shares in its initial public offering in Hong Kong to cover excess demand. The stock gained 9.1% to HK$11.28.

Tsingtao Brewery Co jumped 9.9% to HK$2.90 on yesterday’s reports that it will pay Rmb 171 million to buy out its partner in a mainland venture.


6:00AM New York, 8:00PM Tokyo - Automakers, Shipping lines and exporters drag Tokyo down 4.03% on the first day of trading in 2008.

Japan stock market averages traded in the red on the first day of trading of the year weighed down by heavy losses by automakers as the U.S. auto sales declined.

In Tokyo trading Nikkei 225 dropped 4.03% or 616.37 to 14,691.41, the first fall on the first day of trading since 2001, while the broader Topix Index slumped 4.3% or 63.77 to 1,411.91, the largest decline on the first day of trading since the creation of the index in 1949.

The market was only open for the morning session.