By Laura He, MarketWatch
HONG KONG (MarketWatch) — Hong Kong stocks bounced back Wednesday, breaking an eight-day losing streak, after China’s central bank reportedly pumped tens of billions of dollars into the banking system to spur economic growth in China amid a worse-than-expected slowdown.
The People’s Bank of China is injecting 500 billion yuan ($81 billion) into the country’s five major state-owned banks, a move seen by many as a response to a batch of disappointing economic data in August, media reports said Wednesday.
Hong Kong’s Hang Seng Index /zigman2/quotes/210598030/delayed HK:HSI +0.47% rebounded 1%, recouping some losses after having registered a roughly 4.7% loss over the eight previous sessions.
Mainland Chinese banks advanced broadly, with Bank of Communications Co. /zigman2/quotes/203442771/delayed HK:3328 0.00% climbing 2.3%, Industrial & Commercial Bank of China Ltd. /zigman2/quotes/201401473/delayed HK:1398 +0.24% adding 2%, China Construction Bank Corp. /zigman2/quotes/208974133/delayed HK:939 +0.38% rising 1.9%, Bank of China Ltd. /zigman2/quotes/204682472/delayed HK:3988 +0.40% gaining 1.7%, and Agricultural Bank of China Ltd. /zigman2/quotes/200705246/delayed HK:1288 +1.59% tacking on 1.1%.
Telecoms shares also clawed back some ground, after falling hard a day ago amid reports that the release date of Apple Inc.’s /zigman2/quotes/202934861/composite AAPL -3.17% iPhone 6 in mainland China remains still uncertain. Index heavyweight China Mobile Ltd. /zigman2/quotes/200868736/delayed HK:941 +0.10% went 1.6% higher, while its smaller rivals China Telecom Corp. /zigman2/quotes/206668971/delayed HK:728 +0.40% and China Unicom Hong Kong Ltd. /zigman2/quotes/205091392/delayed HK:762 +4.75% improved by 1.1% and 0.2%, respectively.
Over on the Chinese mainland, the Shanghai Composite Index /zigman2/quotes/210598127/delayed CN:SHCOMP +2.07% rose 0.5%.
In other Asian markets, Japan’s Nikkei Average /zigman2/quotes/210597971/delayed JP:NIK +0.18% inched down 0.1%, with the yen /zigman2/quotes/210561789/realtime/sampled USDJPY -0.0115% slightly lower against the greenback, trading at ¥107.262 compared with ¥107.140 a day ago. Japan’s Topix Index /zigman2/quotes/210598092/delayed JP:180460 +0.49% dropped 0.5%.
In Sydney, the S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO -0.32% declined 0.7%, as the Australian dollar /zigman2/quotes/210560947/realtime/sampled AUDUSD +0.0274% fell to 90.67 U.S. cents, from 90.84 U.S. cents in the previous day. Meanwhile, Seoul’s Kospi Composite Index /zigman2/quotes/210598069/delayed KR:180721 +0.26% settled 1% higher.