The Aft Deck's  Instablog

US Trade Gap Likely Widened, as Imports Grew

The trade deficit in the US likely widened in September, reflecting increased demand for foreign Crude Oil and automobiles as the economy grew.

The Gap between imports and exports increased to US$31.8B from US$30.7B in August, according to the median of 60 estimates in a Bloomberg News survey ahead of the Commerce Department’s Nov. 13 report.

Labor Department data due out the same day may show the cost of goods from abroad rose in October for a 3^rd consecutive month.

Government stimulus has so far cushioned the world’s largest economy from the harm caused by mounting unemployment, enabling increases in consumer and business spending that are drawing in products from overseas.

 Exports may also grow as expanding economies in Asia and Europe and a weak dollar drive demand for American goods, giving manufacturing a lift.

A US government report last week showed unemployment in October rose to 10.2% the highest level in 26 yrs. The number of jobs lost since the recession began in December 2007 climbed to 7.3M.

A collapse in World Trade earlier this year brought the US gap down to US$26B in May, its lowest level since November 1999, as imports tanked faster than exports.

Hong Kong stocks end 1.63% higher, tracking US market gains

The Hang Seng Index of Hong Kong closed 1.63% higher at 21.829.72 last Friday, tracking overnight gains on the Wall Street following better than expected quarterly results announced by Cisco.

The Hang Seng Index gained 0.35% over the past week. Analysts said resistance was turning strong as the blue chip index moved near the 22,000 mark, adding that the index also managed to hold above the support level of 21,000 recently.

Forty-one of the 42 constituents of the Hang Seng Index turned up gainers. The finance sub index, one of the 4 major stock categories, advanced 1.72%. The properties sector added 1. 92% and the commerce and industry sectors added 1.58%. The utilities sub-index gained 0.37%.

Banking giant HSBC rose 1.6 HK dollars, or 1.88%, at 86.85 HK dollars, alone contributing a rise of57 pts to the Hang Seng Index. China Mobile, the leading mobile carrier on the Chinese mainland, rose 0.75 HK dollars, or 1.03%, to close at 73.9 HK dollars. Smaller rival China Unicom surged 3.26 percent at 10.76 HK dollars. The Industrial and Agricultural Bank of China, the largest commercial lender on the Chinese mainland, rose 1.73% China Construction Bank and the Bank of China gained 1.04% and 1.55%, respectively.  China Life rose 2.04% and Ping An advanced 1.35%. PetroChina, the business conglomerate of the Crude Oil industry, advanced 1.65%, and Sinopec, whose business is  refining in the main, advanced 1.34%. CNOOC, the offshore Crude Oil producer, gained3.37% at 12.26 HK dollars.

Computer maker Lenovo, with improving results announced earlier, finished unchanged at 4.44 HK dollars after moving to as high as 4. 6 HK dollars during the session.

Cheung Kong, the flagship of Hong Kong's richest man Li Ka- shing, was up 1.67% at 97.35 HK dollars. Sun Hung Kai Properties, the leading residential housing developer in Hong Kong, gained 2.47% to close at 116.3 HK dollars.

HKEx, the sole exchange operator, closed up 1.67%at 140HK dollars.

Note: 7.8 HK dollars = 1 US$