* HSI +1 pct, H-shares +1.5 pct, CSI300 +1 pct
* Jiangxi Copper jumps as Shanghai copper futures soars
* COSL lifted by DB upgrade on improved growth prospects
* Sa Sa buoyed by strong sales over Labour Day holiday
By Clement Tan and Yimou Lee
HONG KONG, May 6 Hong Kong shares climbed to
their highest in almost two months on Monday, while onshore
China markets rose to a two-week high, buoyed by robust gains
for commodities-related counters as prices in physical markets
By midday, the Hang Seng Index was up 1 percent at
22,909.6 points, its highest since March 12. The China
Enterprises Index of the top Chinese listings in Hong
Kong was up 1.5 percent.
The CSI300 of the leading Shanghai and Shenzhen
A-share listings rose 1 percent. The Shanghai Composite Index
gained 0.9 percent, moving further from its 200-day
moving average after struggling at that technical level for much
"The active money in the market still remains quite short
term, and today it's chasing stocks that were relative
underperformers last week," said Jackson Wong, Tanrich
Securities' vice-president for equity sales.
Jiangxi Copper jumped 5.4 percent in
Hong Kong and 3.4 percent in Shanghai after Shanghai coper
futures climbed by their 5 percent limit, catching up with
strong gains last week after a positive U.S. April jobs report.
Monday's gains were pared after Reuters reported that
China's top refined copper producer shut a 100,000-tonnes-a-year
facility over the weekend due to a shortage of scrap and will
bring forward maintenance at two facilities with combined
capacity of near 450,000 tonnes a year.
Jiangxi Copper dived more than 3 percent in Hong Kong last
week and is still down more than 22 percent on the year,
compared to a 3.7 percent slide on the China Enterprises Index.
Stronger oil prices also buoyed Chinese oil majors. CNOOC
rose 1.7 percent, while China Petroleum and Chemical
Corp (Sinopec) climbed 1.7 percent in Hong
Kong and 1.6 percent in Shanghai.
China Oilfield Services (COSL) spiked 4.8 percent
to its highest since April 12 after Deutsche Bank upgraded it
from "hold" to "buy" on better growth prospects, with CNOOC's
impending ramp-up of its offshore China production in
2014-2016 as likely to benefit COSL.
DATA LATER THIS WEEK
Beijing is due to release April economic data later this
week, starting with trade on Wednesday and inflation on
Thursday, with money supply and loan growth expected from
On Monday, the HSBC services Purchasing Managers' Index
(PMI) fell to 51.1 in April from 54.3 in March, its lowest since
August 2011, with new order expansion the slowest in 20 months
and staffing levels in the service sector decreasing for the
first time since January 2009.
Still, Sa Sa International Holdings Ltd rose 3.8
percent after Citi Research analysts raised the cosmetic
retailer's target price by 45 percent following strong sales
growth during the Labour Day holiday.
Same-store sales growth for Sa Sa grew 17 percent in Hong
Kong and Macau over the April 29-May 1 holiday, while retail
sales jumped 25 percent.
Trading in the shares of China Resources Gas Group
and China Resources Power were suspended on Monday
morning, with both likely to be merged to form an enegy group
worth nearly a combined $22 billion.