Hong Kong Stocks Jump as Stimulus Plan Eases Recession Concern

By Hanny Wan and Jonathan Burgos

Jan. 29 (Bloomberg) -- Hong Kong stocks rose on the first trading day of the Lunar New Year on expectations U.S. President Barack Obama’s $819 billion stimulus package will boost consumer spending in the world’s biggest economy.

Yue Yuen Industrial (Holdings) Ltd., the biggest supplier of athletic shoes to Nike Inc. and Adidas AG, climbed 6.7 percent. Li & Fung Ltd., the largest supplier of toys and clothing to Wal- Mart Stores Inc., jumped 6.8 percent.

The Hang Seng Index added 747.28, or 5.9 percent, to 13,325.88 as of 10:10 a.m. local time. The Hang Seng China Enterprises Index, which tracks Chinese companies’ so-called H shares, advanced 6.6 percent to 7,101.69. Markets reopened today after a three-day Lunar New Year holiday.

The Standard & Poor’s 500 Index climbed 3.4 percent in New York after a White House official said President Barack Obama’s team may announce its plan to set up a so-called bad bank to buy toxic financial assets. After the market closed in New York, the U.S. House passed Obama’s $819 billion stimulus package, which now moves on to a vote in the Senate.

To contact the reporter on this story: Hanny Wan in Hong Kong at hwan3@bloomberg.net