HONG KONG—Hong Kong stocks advanced modestly Friday after Wall Street gained overnight and Cheung Kong rose on an analyst upgrade.
The blue chip Hang Seng Index climbed 105.15 points, or 0.4 percent, to 25,618.86. For the week, the index gained 2.2 percent.
Investors may tread carefully in coming days, said Y.K. Chan, a fund manager at Phillip Asset Management. Cement and steel companies, however, could find support as reconstruction gets under way after this week's devastating earthquake in Sichuan province.
"I expect the market to continue to focus on the cement and steel sectors in the near term, given strong demand for their products after the earthquake," Chan said.
Friday's gain came after the Dow Jones industrial average rose 94.28 points, or 0.73 percent, to 12,992.66 Thursday on declining oil prices.
Li Ka-shing's property flagship Cheung Kong, meanwhile, jumped 3.3 percent to 128.40 Hong Kong dollars after Citigroup raised its target price to HK$140.81 from HK$134.19.
In contrast, Sun Hung Kai Properties fell 1.7 percent to HK$133.80 after slipping 1 percent in the previous session amid a legal feud between Chairman Walter Kwok and his two younger brothers over the company's management. Sun Hung Kai is Hong Kong's largest property developer by market capitalization.
