July 19, 2012 (Chinavestor) Stocks surged in Asia on Thursday. American corporate earnings lifted investor sentiment in Hong Kong pushing the Hang Seng Index (INDEXHANGSENG:.HSI0 319.2 points or 1.6% higher. Mainland investors hope for an eventual monetary easing, snaping up market sensitive shares. The Shanghai Composite Index (SHA:000001) rose 15.7 points or 0.7% for the day with insurer companies taking the lead.
China Life Insurance Co. (SHA:601628) rose 5.6%, the most among the 50 largest components of the broad index. Ping an Insurance (SHA:601318) and China Pacific Insurance (SHA:601601) rose 3.7% and 4.5%, respectively. Chinese insurers derive approximately 20% of net income from investment related gains.
Investors snapped up undervalued Chinese telecoms in Hong Kong. China Telecom (HKG:0728) and China Unicom (HKG:0762) rose 6.8% and 5.4%, the most among components of the 42 member Hang Seng Index (INDEXHANGSENG:.HSI). Despite current surge, shares of China Unicom (HKG:0762) are down over 38% YTD.