1/2-yr high, property up after yuan move Hong Kong, July 22 , SPA - Hong Kong stocks jumped over 1 percent to near 4-1/2-year highs on Friday after China revalued the yuan by 2.1 percent and abandoned the currency's decade-old peg to the U.S. dollar, Reurters reported. Shares of property developers with projects in China climbed along with petrochemical and airline counters, but exporters fell on fears that a stronger yuan would push up costs. The blue-chip Hang Seng Index closed up 1.14 percent, or 166.32 points, at 14,786.46, a level last seen in February 2001. The index gained 1.95 percent over the week, and is up 3.91 percent so far this year. Turnover was heavy at HK$31.8 billion (4.1 billion), compared to HK$23.3 billion on Thursday. But traders also said trading might be relatively subdued after next week as investors look ahead to the earnings season. "The market will probably wait for HSBC results due out the Monday after (Aug. 1), so that is quite crucial. Next week, the market is likely to trade in a narrow range, awaiting for the results," said Herbert Lau, CIO of CASH Asset Management. Property stocks outperformed the broader market on Friday with the Hang Seng Properties sub index rising 2.34 percent to 19,082.47. More funds are expected to flow into China after the long-expected revaluation and some will be used to buy properties, analysts said. --more 1248 Local Time 0948 GMT
