AlHijjah 8, 1432, Nov 4, 2011, SPA -- Hong Kong shares bounced 3.1 percent on Friday, recovering most of this week's losses on strength in locally listed mainland companies as cyclicals such as energy and materials joined a rally led by Chinese insurers, according to Reuters. On the mainland, the Shanghai Composite Index continued its steady climb from a 2-1/2 year low late last month as optimism about a year-end rally in China picked up. The index gained 0.8 percent on the day, bringing its weekly gains to 2.2 percent. In Hong Kong, businesses most sensitive to China's domestic stock markets, such as insurers that hold shares in investment portfolios and brokerages, rose. Top insurer China Life jumped 7.3 percent bringing its weekly gain to 12.8 percent. It is up 32.6 percent over the past month. Friday's gains, combined with a recovery by index heavyweight HSBC Holdings which suffered losses in the previous session over worries about Europe, meant that the Hang Seng Index cut its weekly losses to just 0.9 percent. At its lowest point on Wednesday, the index was down nearly 5 percent for the week. Hong Kong shares were caught in the panic among global investors that hit markets after Greece's abrupt call for a referendum, just days after a deal was struck to save the debt-stricken country from defaulting. But a recovery in Chinese shares offered support.
