Hong Kong stocks soar as budget unveils tax cuts (MarketWatch) (27-02-2008)

HONG KONG (MarketWatch) -- Hong Kong stocks soared Wednesday after the government announced a reduction in salaries and corporate taxes in its budget for the next financial year, lifting front-line stocks such as HSBC Holdings and property counters such as Cheung Kong (Holdings).

Other Asian markets also rallied, encouraged by a higher finish on Wall Street, with Japanese stocks rising on exporters such as Honda Motor Co., while near-record crude-oil prices pushed shares of Nippon Oil Corp. higher.

In Hong Kong, the Hang Seng Index ended the morning session 3.7% higher at 24,597.14, while the Hang Seng China Enterprises Index advanced 5% to 13,991.04.

Property counters also rallied on hopes the tax cuts would lead to greater demand for residential property, with Cheung Kong rising 4.5% and Sino Land Co. climbed 3.9%.

 Source MarketWatch