IN BRIEF (Page 3)

Updated: 2009-11-06 08:18

(HK Edition)

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HKMA intervention eases HKD exchange pressure

Inflows to Hong Kong picked up after the US Federal Reserve gave no signal interest rates would increase any time soon, but market intervention by the Hong Kong Monetary Authority managed to keep the Hong Kong dollar steady against the U.S. unit late yesterday.

The HKMA sold HK$3.88 billion in the foreign-exchange market earlier yesterday, its first intervention since October 28, after strong inflows pushed the U.S. dollar to the intervention point of HK$7.7500.

The U.S. unit was fixed at HK$7.7501 before the intervention earlier yesterday.

HK shares may rise on Wall St's gains; resources eyed

Hong Kong shares look set to rise for a second day yesterday, but gains will be limited ahead of US jobless data due today, while resources will be in focus after the US dollar weakened.

"The weakness of the US dollar continues to give momentum to commodities and the stock market," said Patrick Yiu, managing director at CASH Asset Management. "But I don't think we will have a sharp gain unless the A-share market performs very well," he added.

Wall Street shares initially rallied on Wednesday after the Federal Reserve said it would keep its rates near zero "for an extended period", but succumbed to selling pressure in the last half-hour of trading.

China Daily/Agencies

(HK Edition 11/06/2009 page3)