Around the World's Markets: Hong Kong

THE HANG SENG INDEX closed 342.74 higher at 10,233,80, a gain of 3.5 per cent, as hopes of a further cut in interest rates rose and shares rallied in Tokyo.

Foreign investors were said to be buying interest-sensitive stocks, including banks and property groups. Telecoms and trading stocks also firmed but the overall mood remained cautious. At Nomura, Kevin Chan expects more companies to freeze or cut salaries next month.