Options traders are turning bullish on Li & Fung Ltd., the Hong Kong-based supplier to Wal-Mart Stores Inc., betting on a revival of its American operations after the stock lost 61 percent of its value.
Hong Kong stocks fell, with the benchmark index extending its biggest drop in three weeks, after a report yesterday on China’s manufacturing industry added to concern the world’s second-largest economy is weakening.
Hong Kong stocks fell for a second day before the U.S. Federal Open Market Committee’s announces whether it will pare record stimulus. Tencent Holdings Ltd. drove the benchmark index lower, while city developers climbed.
Asia’s benchmark stock index was little changed as Chinese shares slid on concern funding costs for lenders will remain high even after the central bank injected liquidity. Japan’s Nikkei 225 Stock Average rose as the yen reached a five-year low.
Hong Kong stocks rose, with the city’s benchmark index climbing by most in almost two months, amid earnings optimism and as investors await the outcome of the Federal Reserve’s policy meeting concluding today.
Hong Kong billionaire Li Ka-shing made his fortune over a half-century of well-timed bets on everything from property to power generation. His latest deals suggest he’s wagering the city’s era of fast growth may be drawing to an end.