Around the World's Markets: Hong Kong

MOUNTING speculation of a local interest-rate cut helped Hong Kong stocks close sharply higher yesterday. The benchmark Hang Seng index ended 389.78 points higher at 12,933.54, having broken through 13,000 in the session.

Charles Crofton-Atkins, trader at South China Securities, said: "The bulls are out. We're above our technical resistance level and there's a strong possibility of a rate cut". The Hong Kong Association of Banks holds its interest-rate meeting today; it last cut rates a fortnight ago.