Hong Kong shares sharply higher on Wall St, easing Sino-U.S. tensions

HONG KONG (AFX-ASIA) - Share prices were sharply higher in early trade, following the technical rebound on Wall Street overnight, dealers said.	    They said sentiment was also bolstered by the easing in Sino-U.S. tensions after U.S. President George W. Bush expressed regret over the Chinese pilot, missing since last weekend's collision between his fighter jet and a U.S. surveillance aircraft.	    At 10:40 am, the Hang Seng Index was up 479.90 points at 12,543.61, on trade of 2.48 bln hkd.	    The Hang Seng April contract last traded at 12,595 points.	    The China Enterprises Index was up 9.44 points at 414.45 and the CAC Index was 34.10 higher at 1,033.81.	    TraHK fell 0.40 hkd to 12.70 on volume of 2.05 mln units.	    The GEM index was up 4.58 points at 260.21 on turnover of 33.76 mln hkd. 	    Kitty Chan, associate director of Lippo Securities, said Wall Street's technical rebound accounted for the strong performance of the Hang Seng Index in early trade.	    "The Hang Seng Index just mimicked the technical rebound on Wall Street last night," she said.	    "The outlook for the Hang Seng Index will hinge on the performance in Wall Street," she added.	    The atmosphere in China-U.S. discussions had improved, after President Bush offered his condolences for the lost Chinese pilot.	    Chan said the market rally was across the board, although the technical rebound was most substantial in telecom stocks after their hefty losses on Wednesday.	    Among telecom stocks, China Unicom was 0.70 firmer at 8.55 and China Mobile up 2.90 at 32.60, ahead of the release of its 2000 results next Monday.	    Hutchison added 2.50 to 80.75 and SmarTone was up 0.30 at 8.70.	    PCCW was up 0.125 at 2.725, following news that its joint venture with Telstra Corp may bid for MobileOne. Meanwhile, PCCW said it has no plan to reduce its stake in the Cyberport project.	    In the financial sector, HSBC rose 2.50 to 92.25, Hang Seng Bank gained 2.0 to 92.00 and Bank of East Asia added 0.40 to 17.35.	    Among properties, Cheung Kong was up 2.0 at 82.50, Sun Hung Kai Properties was 1.75 higher at 73.25, and Hysan Development rose 0.70 to 11.15. 

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