Hong Kong’s Hang Seng index saw its best week in over eight months on Friday as property stocks gained on reports that cash-strapped Evergrande averted a dollar bond default.
Benchmark Hang Seng index trimmed gains to trade 0.2% higher after lunch on Friday. The index was on track to close higher for the fourth straight week with a weekly gain of 2.9%.
Hang Seng Properties index extended gains to advance 1.6% on Friday following the welcoming news on Evergrande. Real estate firms Longfor Group and China Resources Land were top gainers on the index, up 6.3% and 3.9%, respectively.
Tech stocks in Hong Kong rally
Tech stocks in Hong Kong contributed most to the benchmark index’s rise over the week. The Hang Seng TECH index gained nearly 6% this week as investor picked up battered down stocks on attractive valuations.
Bucking the trend, Chinese coal firms posted heavy losses on Friday after coal futures in China plunged as Beijing stepped in to curb surging prices.
Japan inflation rises
On Friday, Japanese technology stocks gain most to help the benchmark Nikkei 225 index recovered from Thursday’s losses. Tech investor SoftBank Group climbed 0.6% while conglomerate Rakuten Group gained 1.6%.
The Japanese benchmark index rose 0.3% to 28,804.85 points on Friday but still posted a loss of 0.9% for the week.
Data showed consumer inflation in Japan rose for the first time in 18 months in September. Investors now await the Lower House general elections scheduled for next week.
Aussies shares close flat
Meanwhile, Australia’s S&P/ASX 200 index ended close to flat for a second day in a row on Friday. The Aussie benchmark extended weekly gains to three straight weeks.
Railway operator Aurizon Holdings dropped over 6% to see its worst day since March 2020 after announcing a $1.8bn deal to buy One Rail Australia.
Lynas Rare Earths, the largest rare earths producer outside China, tumbled over 8% to emerge as the top percentage loser on the benchmark index after reporting a fall in quarterly revenue.
The difference between stocks and CFDs
The main difference between CFD trading and stock trading is that you don’t own the underlying stock when you trade on an individual stock CFD.
With CFDs, you never actually buy or sell the underlying asset that you’ve chosen to trade. You can still benefit if the market moves in your favour or make a loss if it moves against you. However, with traditional stock trading you enter a contract to exchange the legal ownership of the individual shares for money, and you own this equity.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade to open a position. But with traditional stock trading, you buy the shares for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks.
CFDs attract overnight costs to hold the trades, (unless you use 1-1 leverage) which makes them more suited to short-term trading opportunities. Stocks are more normally bought and held for longer. You might also pay a stockbroker commission or fees when buying and selling stocks.