Hong Kong index rallies most in seven years on China hopes

Asian stock markets rallied overnight as Hong Kong's Hang Seng Composite index posted its longest streak of gains in seven years.

The index rose 0.3% to 2,945 overnight, its 11th consecutive day of gains and its highest level since July 2005, according to Bloomberg data. Asian markets were boosted by the US Federal Reserve's recently announced third programme of quantitative easing, combined with speculation of a rebound in Chinese stock valuations. Yesterday, government data showed Chinese factory output and retail sales grew in September, despite a lower growth figure for the seventh quarter. Now analysts are turning more bullish on China after fears of slowing growth and a possible hard landing for the wor...