Hong Kong stock index soars almost 13 percent

Hong Kong's key stock index soared nearly 13 percent Thursday, gaining for a third straight session to lead a region-wide rally amid fresh efforts in the U.S and Asia to ease the credit crisis and revive the global economy.

The blue-chip Hang Seng Index rose 1,627.78 points, or 12.8 percent, to 14,329.8.

Investors cheered the U.S. Federal Reserve's overnight move to slash its key interest rate by half a percentage point, a cut that was matched by Hong Kong's de facto central bank, analysts said. The Fed also temporarily opened credit lines to more countries, including Singapore and South Korea.

Also lifting sentiment were promises from China's premier that the central government would make "all-out efforts" to help the territory weather deteriorating global economic conditions. China lowered its interest rates by just over a quarter point on Wednesday.

After five days of declines that saw Hong Kong's benchmark index fall 27 percent, the market seemed primed for an explosive move higher, analysts said.

"This is panic buying after panic selling," said Linus Yip, a strategist at First Shanghai Securities.

Resource firms were among the day's best performers, thanks to firmer commodity prices. China Shenhua climbed 20 percent to HK$13.4 and Aluminum Corp. of China gained more than 22 percent to HK$2.89.

Chinese offshore oil and gas producer CNOOC Ltd. surged 22 percent to HK$6.13. Shippers benefited from stronger commodities, with China Cosco Holdings, the country's biggest shipping conglomerate, vaulting 41 percent to HK$4.1.

In financials, HSBC Holdings added 10.7 percent to HK$95.4. Goods and textile company Li & Fung, up almost 20 percent to HK$17.5, was one of several export-linked stocks to post huge gains.

The interest rate cuts appeared to help loosen lending. Hong Kong's interbank offered rate, also known as Hibor, for three-month loans slid to 3.39 percent from 3.54 percent.

Copyright and Exemption Declaration :¢ÙAll articles, pictures and videos that are marked with "China Aluminum Network" on this website are copyright and belong to China Aluminium Network (www.alu.com.cn). When transshipment, any media, website or individual must list the source from "China Aluminium Network (www.alu.com.cn)". We seek legal actions against anyone that disobey this. ¢ÚArticles that marked as copy from others are for transferring more information to readers, do not represent or endorse their opinions or accuracy and reliability. When other media, website or individuals copy from our website, must keep the source. Anyone that changes the articles' sources will hold the responsibilities for copyright and law problems. We also seek legal actions against anyone that disobey this. ¢ÛIf any articles copied by our website concern the copyright and other problems, please contact us within one week.