HONG KONG, April 6 (Reuters) - Financial counters led gains in Hong Kong on Wednesday, with investors largely shrugging off Beijing's fourth interest rate increase since October in Tuesday. [ID:nSGE735004]
"This rate rise didn't come as a surprise. Market sentiment remains quite bullish," said Wing Fong Financial Group analyst Mark To. "People are not going to dump their stocks now, they are waiting for further upside."
The benchmark Hang Seng Index finished up 0.56 percent at 24,285.05, extending a four-session winning streak and climbing to levels last seen in January. The China Enterprises Index gained 0.52 percent to 13,657.63.
The Shanghai Composite Index breached the key 3,000 resistance level, closing up 1.14 percent at 3,001.36, also a near one-month high.
HIGHLIGHTS:
* HSBC Holdings Plc , Bank of China Ltd and Chinese insurers, China Life Insurance Co Ltd and Ping An Insurance (Group) Co of China Ltd were among leading gainers in Hong Kong.
* Analysts expect the rate rise announced late on Tuesday to be a net positive for banks as it could help to slightly widen the spread between lending and deposit rates that banks rely on for much of their revenue.
* Some Chinese property, energy and banking counters underperformed the broader Hong Kong market as investors took profit on overbought stocks, but analysts said the broader uptrend for the sectors remained intact.
* CNOOC Ltd , technically overbought with a relative strength index (RSI) value of 87.4 at the start of trading on Wednesday, lost 2.2 percent. China Overseas Land & Investment Ltd , overbought with an RSI value of 84.5 before the start of trading on Wednesday, recovered from a 3.5 percent decline in the morning to close down 2.3 percent.
DAY AHEAD:
* Analysts said trading would likely be rangebound this week, citing 24,800, the Hang Seng's January peak, as the next resistance point, with support seen at 23,400.
* Some analysts said a low dollar and yen would encourage fund flows into Hong Kong, something they have noticed with the Hong Kong dollar strengthening steadily since March 30. (Reporting by Clement Tan; Editing by Chris Lewis)