Hong Kong sees biggest gain since 2011 as Asia-Pacific markets rally on global stimulus packages to battle coronavirus

Hong Kong’s benchmark jumped by the most in almost a decade Friday as it led a broad rally in Asia-Pacific markets, as sentiment improved on steps by global central banks and policymakers to cushion damage by the coronavirus pandemic.

The US Federal Reserve took measures to address a liquidity crunch that swept almost every class of financial assets and the European Central Bank ramped up debt purchases, helping to power Europe’s Stoxx 50 Index 3 per cent higher and boosting all three US benchmarks.

The improved sentiment comes even after dramatic news continued to dominate headlines. US jobless claims rose to the highest in more than two years and the total fatalities in Italy surpassed those in China, despite its population being less than 5 per cent of that of the Asian nation.

Meanwhile, California – which, if it were a country, would be the world’s fifth largest economy – has ordered its 40 million residents to stay home. The governor of the state that is home to Silicon Valley said modelling shows half of the residents could become infected over the next eight weeks – a startling possibility that would overwhelm hospitals. Iran, a hotspot in the virus spread, said it is seeing a death every 10 minutes.

The Hang Seng Index advanced 5.1 per cent to 22,805.07, adding 1,095.94 points, as bargain hunters swooped in. That is the best performance for the 50-member benchmark since December 2011. Even with that big gain, the gauge still fell 5.1 over the week. Commerce and industry stocks led the gain, followed by properties and finance, according to Hang Seng gauges.