Around the World's Markets: Hong Kong

THE HANG SENG index rose 130.88, or 1.8 per cent, to 7,504.39, as China cut US dollar deposit rates for the second time in three months, signalling that it may soon lower interest rates to boost flagging economic growth, rather than devalue the yuan.

The speculation gained credence from a report in an official Hong Kong publication that the mainland needs a "big cut'' in official rates to boost growth. Chinese state-owned companies listed in Hong Kong rose 4.1 per cent as a group.