HK stocks drop in volatile trade; China stocks at 13-mnth high

• IBTimes RSS
• Print
• E-Mail
• digg
• Del.icio.us

* Shanghai stocks power ahead of 13-month closing high

* Chinese insurers outperform on Shanghai market rally

HONG KONG, July 2 (Reuters) - Chinese stocks rose 1.7 percent to a 13-month closing high in heavy trade on Thursday, with energy and metals shares strong as investors gained confidence in the recovery of the world's third-largest economy.

But Hong Kong shares dropped on their first trading day of the third quarter, shedding early gains as the mood in the market swung from optimism over upbeat manufacturing data to caution ahead of key U.S. jobs data.

Defying the slump in the broad market Chinese insurers jumped on Thursday as the surging Shanghai Composite Index .SSEC raised hopes for strong investment income at insurance companies in 2009 after last year's market meltdown.

China's second-biggest insurance company Ping An (2318.HK) climbed 3.3 percent in Hong Kong, while its Shanghai-listed stock (601318.SS) advanced 5.2 percent to 54.98 yuan extending Wednesday's 5.68 percent rise. The Shanghai benchmark index which rose above 3,000 points for the first time in more than a year on Wednesday has rebounded over 68 percent so far this year following last year's market meltdown.

HSI IN ROLLER COASTER RIDE

The benchmark Hang Seng Index .HSI finished down 200.68 points at 18,178.05 after starting the day at 18,780.96 only to reverse course in the afternoon.

The U.S. employment report, due on Thursday as U.S. markets will be closed on Friday for the Independence Day holiday, is expected to depict an economy still wallowing in recession, but will likely confirm that the pace of job losses has slowed. [ID:nN01511504]

Turnover picked up pace, rising to HK$68.4 billion from Tuesday's HK$65.1 billion but worries persisted about the lack of momentum on the market.

• 1
• 2
• 3