6:00AM New York, 6:00PM Hong Kong - Hong Kong stocks closed up 2.7% as investors returned.

In Hong Kong trading Hang Seng Index jumped 2.7% or 664.13 to 25,114.98, largest gain in thirty trading days, while the China Enterprises index of H shares, or Hong Kong-listed shares in mainland companies, gained 3.3% or 465.29 to 14,481.41.

Daily turnover on the main-board was at HK$138.3 billion compared to HK$145.1 billion yesterday.

Morgan Stanley today raised its recommendation on the Hong Kong listed stocks from “cautious” to “inline” after saying the near term downside is limited.

The People’s Bank of China announced on its Web site yesterday that commercial banks will be required to keep 15% of their deposit from the previous 14.5% effective January 25th as part of tightening measures to curb inflation and economic overheating.

The Standard news online reported today Hutchison Telecommunications Limited said yesterday it will book a HK$3.85 billion non-cash impairment charge in 2007 against the mobile business in Thailand, causing it to report an operating loss for 2007.

Hutchison also added that a deferred tax credit of HK$421million relating to the Thailand impairment charge will also be realized in the 2007 results.

Merrill Lynch said in a report Beijing has also added instant noodles, edible oil and milk products for close monitoring of price increases as part of efforts to put a lid on inflation.

Milk processor China Mengniu Dairy Co Limited fell 8.5% to HK$22.70 in heavy trade.

HSBC Holdings gained 3.5% to HK$119 after declines of six days in a row. The Hong Kong Clearing Exchange climbed 4.4% to HK$179.50.

Mobile phone operator China Mobile jumped 3.4% to HK$122.5, while China Life edged up 6.1% to HK$35.5.

Export oriented Esprit Holdings surged 9.7% to HK$95.1.


5:00AM New York, 7:00PM Tokyo - Tokyo rebounds 2.07% after four days of decline.

Stocks in Japan gained on bargain hunting after the Nikkei 225 index fell below 14,000.

In Tokyo trading Nikkei 225 reversed a four day 7.5% slump to close up 2.07% or 278.94 to 13,783, while the broader Topix Index soared 27.21 to 1,329.58.

In the first section of the Tokyo Stock Exchange 11.7 billion shares valued at 1.3 trillion yen changed hands and in the second section 365.8 million shares worth 4.2 billion yen were traded.

Of the Nikkei 225 stocks 184 gained, 35 declined, and 6 were unchanged.

Kyodo news online reported today that the Bank of Japan said yesterday in its quarterly survey an increasing number of consumers are losing confidence in the economy as wage increases fail to rise with the inflation.

The U.S. Federal Reserve Board said yesterday in a statement it had sanctioned Japanese online bank eBank Corporation’s application to set up a office in San Francisco.