ASIA MARKETS: China Mobile Leads Hong Kong To Highest Close In Years

By Laura He, MarketWatch

HONG KONG (MarketWatch) -- Hong Kong stocks rose Friday, leaving the Hang Seng Index at its highest level in more than three years, with China Mobile leading the way on strong subscriber growth and 4G expansion plan.

The Hang Seng Index rose 0.6% to 24,954.94, the best closing level since Nov. 8, 2010, according to FactSet data.

Index heavyweight China Mobile Ltd. , the world's largest mobile carrier by subscribers, popped 5.8% higher and extended a three-session string of gains, after several investment banks, including Credit Suisse (CS) and Deutsche Bank , raised price targets for the stock.

China Mobile reported Thursday that its first-half net profit dropped 8.5% year-on-year, in line with market expectations, while its 4G subscriber count jumped 47% to more than 20 million in July. The carrier also said it plans to expand its 4G network nationwide, hoping to get a total of 50 million 4G users by the end of this year.

Other market movers included PC maker Lenovo Group , advancing 2.7%, Sino-British bank HSBC Holdings plc , gaining 1.3%, and Hong Kong Exchanges & Clearing Ltd. , rising 1.2%.

In Japan, the benchmark Nikkei Average ended in positive territory, up less than 0.1%. Media conglomerate Sony Corp. improved by 2.1%, console maker Nintendo Co., Ltd was 1.7% higher, while camera maker Olympus Corp. declined 1.3%.

The broader Topix index also nudged higher by less than 0.1%, while the yen (USDJPY) dropped a little to Yen102.553, from Yen102.478 in the prior session.

In other Asian markets, mainland China's Shanghai Composite Index picked up 0.9%, Australia's S&P/ASX 200 tacked on 0.3%, while Taiwan's Taiex moved lower by 0.3%.

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