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Hang Seng Index caps best gain in a week, regional markets rally as pandemic easing measures fuel recovery hopes

  • Hang Seng Index completes its best gain in a week, looking past Friday’s rout, as more businesses reopen
  • Japanese stocks pace rally with more than 2 per cent gain after government ends virus emergency measures

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A man wearing a mask twalks past an electronic stock board showing Japan's Nikkei 225 and New York Dow indexes at a securities firm in Tokyo. Stocks in Asia-Pacific region are rising on the back of measures to reboot economies. Photo: AP
Zhang Shidong
Hong Kong stocks had their biggest gain in a week as traders looked past political risks in the city to focus on the prospect of economic recovery in the Asia-Pacific region as governments unravel lockdown measures.
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The Hang Seng Index advanced for a second day, adding 1.9 per cent, or 432.42 points, to 23,384.66 at the close of trading. The Shanghai Composite Index added 1 per cent for its biggest advance this month. The Hong Kong dollar also strengthened, rising 0.04 per cent to trade at HK$7.7515 against the US currency.

The rally followed resilient sentiment across the region. Japan’s Nikkei 225 advanced by 2.6 per cent, South Korea’s Kospi gained 1.8 per cent and Australia’s S&P ASX 200 surged 2.9 per cent. More businesses reopened in Hong Kong and Japan ended a nationwide state of emergency, while a gauge tracking German business expectations rose, underpinning confidence among traders.
Developer Wharf (Holdings) jumped more than 3 per cent after collecting US$944 million from the sale of its stakes in Amazon and Facebook. Meituan Dianping, China’s biggest online platform of bookings and food delivery, rose to a record high after first-quarter earnings beat estimates.

“Hong Kong is the region’s surprise outperformer today,” said Jeffrey Halley, an analyst at Oanda in Singapore. “Asian equities look set to remain at very favourable levels. What is clear is that the peak-virus trade continues to maintain its strong positive momentum.”

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Hong Kong’s key stock index slumped by the most in five years on Friday in reaction to Beijing’s move to impose a national security law on the city. The move has inflamed political tensions as Chinese delegates prepare to vote on the resolution at the annual legislative meeting later this week.
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