Most Hong Kong stocks rose, with the city’s benchmark index heading for its first advance in three days, as consumer shares climbed and raw-material producers gained after copper and oil futures rebounded.
China’s government may cut the country’s annual growth target to 7 percent next year, although the actual pace of expansion will be higher, according to Fan Jianping, chief economist at a state research institute.
China’s exports increased more than estimated in August and inflation stayed below a government target, helping Premier Li Keqiang sustain a rebound in the world’s second-largest economy from a two-quarter slowdown.
China’s finance companies predict central bank Governor Zhou Xiaochuan will extend a cash crunch, albeit without June’s dramatic swings, as he calls for the market to “discover and correct” excessive lending.
China’s growth slowed more than forecast last quarter to the least in almost three years, prompting economists to predict a rebound as Premier Wen Jiabao loosens policy to counter weak domestic and European demand.
Rubber declined for a second day as a strengthening Japanese currency reduced the appeal of yen- denominated contracts and investors remained concerned that demand is slowing in China, the biggest user.