Hong Kong shares close sharply higher on Wall Street led by telecom stocks

HONG KONG (AFX-ASIA) - Share prices closed sharply higher on the back of gains on Wall Street, with notable buying interest in hi-tech and telecom stocks after NASDAQ's rise, dealers said.	    They said financials and properties benefited from the upbeat sentiment, supported by sustained expectations that the Fed will further cut interest rates in May, despite strong U.S. first quarter GDP growth.	    Red-chips and H-shares remained strong, boosted by their positive earnings prospects, with aviation stocks under the spotlight on expectations that the sector will see solid merger and acquisition plans, they said.	    The Hang Seng Index was up 428.20 points at 13,814.24, off an early low of 13,596.27 and an early high of 13,841.41, on turnover of 11.32 bln hkd.	    The Hang Seng May contract last traded at 13,786 points.	    The Hang Seng China Enterprises index was up 12.43 points at 487.44, while the CAC index was up 67.30 points to 1,254.26.	    TraHK was up 0.35 hkd at 13.80 on volume of 9.24 mln units.	    The GEM index was up 8.48 points at 272.81 on turnover of 198.47 mln hkd.	    Marty Chan, an analyst with Polaris Securities, said the Hang Seng Index was higher in tandem with the gains on Wall Street overnight, after the latest U.S. economic data suggested that more rate cuts are in the offing.	    "The market followed the rise in overseas stock markets, particularly on Wall Street," he said.	    Chan said hi-tech and telecom stocks led the initial gains after their weak performance recently.	    "Deutsche Telekom AG's takeover of Voicestream Wireless has been approved by the Committee on Foreign Investment in the U.S. This was positive to underlying sentiment, especially for Hutchison Whampoa," he said.	    Hutchison was up 2.25 at 86.50, China Mobile was 3.0 higher at 41.30, and SmarTone rose 0.80 to 9.95.	    China Unicom gained 1.15 to 12.10 and Pacific Century CyberWorks added 0.05 to 2.75.	    Among hi-tech stocks, ASM Pacific was up 1.05 at 14.40, Johnson Electric fin ished up 0.85 to 15.50, Great Wall Technology was 0.025 higher at 2.275, Legend was up 0.45 at 6.65.	    Chan said the stronger-than-expected U.S. GDP data for the first quarter is unlikely to sway the Fed's decision to further cut interest rate in May, as there is not yet a concrete sign of a U.S. economic recovery. 	    "The U.S. should cut interest rates further in May ... and this will be positive for financial and property stocks," he said.	    Among interest-rate sensitive stocks, HSBC rose 2.00 to 101.00, Bank of East Asia rose 0.30 to 18.10, Dao Heng Bank gained 0.25 to 58.25, but Hang Seng Bank dropped 1.25 to 90.75.	    Cheung Kong rose 2.25 to 89.25, Sun Hung Kai Properties added 0.75 to 73. 25, Henderson Land gained 0.20 to 36.00 and New World Development rose 0.35 to 10.05.	    Underperforming the broader market, First Pacific fell 0.01 to 1.77 on concerns that the political tensions in the Philippines will affect its investments in the country. 	    On the GEM board, tom.com was up 0.145 at 2.125, hongkong.com rose 0.005 to 0.355, and Sunevision added 0.05 to 1.94.	    For red-chips and H-shares, China Eastern Airlines rose 0.10 to 1.22 and China Southern Airlines gained 0.175 to 2.575, following news that their parent will negotiate with other airlines in China for possible cooperation.	    China Shipping Development rose 0.08 to 1.32 and Yanzhou Coal gained 0.225 to 3.425.	    Denway Motors gained 0.175 to 2.50, China Merchants rose 0.30 to 5.90, and China Resources was up 0.45 at 11.90.	    Guangdong Kelon fell 0.16 to 1.71 after its 2000 results.	    Sunlord Chemical last traded at 0.285 hkd, compared with its issue price of 0.25 hkd. 

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