Hong Kong stocks cap best day in a month as Biden’s US$2.25 trillion spending plan fuel markets in Asia

Hang Seng Index advanced 2 per cent, the most in a month, in bullish end to holiday-shortened week

Asian markets also tracked overnight gains in US equities as Biden unveils a US$2.25 trillion stimulus, US economy adds most jobs in six months

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Bull and Bear statues seen outside the Deutsche Boerse stock exchange, in Frankfurt. Photo: EPA-EFE

Published: 10:49am, 1 Apr 2021Updated: 5:15pm, 1 Apr 2021

Hong Kong stocks started the second quarter on the front foot, joining a rally in regional markets after President Joe Biden unveiled a US$2.25 trillion stimulus plan while the US economy added the most jobs in six months.

The Hang Seng Index rose 2 per cent to 28,938.74 at the close of trading on Thursday, the biggest gain since March 3. That also extended a 4.2 per cent gain in the first quarter. Meituan and WuXi Biologics jumped at least 8 per cent, lifting the Hang Seng Tech Index to a 4.7 per cent surge. The Shanghai Composite Index gained 0.7 per cent.

Hong Kong’s market will be shut for three trading days from Friday to Tuesday for Easter and Chinese tomb-sweeping day, while the mainland markets will halt trading only on Monday.

Investors shifted their focus to growth outlook after a brief shakeout stemming from the blow-up at Bill Hwang’s Archegos Capital Management. Biden’s “American Jobs Plan” will invest about US$1.3 trillion in projects from transport to cleaner water and high-speed broadband in an eight-year period. The plan will also fund US manufacturing industries and help the elderly and disabled.

“Despite higher market volatility, it’s important for investors to stay invested as economic fundamentals remain sound and central banks accommodative,” said Andy Wong, an investment manager at Pictet Asset Management.

Major stock benchmarks in the Asia-Pacific region all rose, tracking overnight gains in US equities. Japan’s Nikkei 225 rose by as much as 1.4 per cent as the fallout of the Archegos sell-off receded.

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Hong Kong stocks cap best day in a month as Biden’s US$2.25 trillion spending plan fuel markets in Asia

Hang Seng Index advanced 2 per cent, the most in a month, in bullish end to holiday-shortened week Asian markets also tracked overnight gains in US equities as Biden unveils a US$2.25 trillion stimulus, US economy adds most jobs in six months

Hang Seng Index advanced 2 per cent, the most in a month, in bullish end to holiday-shortened week

Asian markets also tracked overnight gains in US equities as Biden unveils a US$2.25 trillion stimulus, US economy adds most jobs in six months