Hong Kong and China stocks rise on hopes for coronavirus vaccine, easing of global lockdown measures
- Tech stocks get a boost as inclusion of new economy companies into benchmark index is approved
- Hang Seng Index closes at the highest level since April 7
Hong Kong and China stocks rose for a second consecutive day after a coronavirus vaccine undergoing trials in the US showed encouraging signs and more countries opened up their economies after months of lockdown.
Chinese President Xi Jinping’s pledge to make any coronavirus vaccine universally available once it’s developed also boosted sentiment.
The Hang Seng Index rose 1.9 per cent to 24,388.13, its highest level since April 7. The Shanghai Composite Index climbed 0.8 per cent to 2,898.58.
The gains in Hong Kong were mostly across the board, with banks and property developers the day’s big winners. Out of the 50 index constituents, 48 rose.
“People’s confidence in future economic growth is increasing as a vaccine could arrive sooner than expected,” said Stanley Chan, director of research at Emperor Securities. “The appetite for risk has increased with Hang Seng Index’s reform also boosting the market.”
The successful trial of a Covid-19 vaccine being developed by Moderna of the US along with expectations of a faster-than-expected economic recovery helped to propel the S&P 500 index overnight to its biggest one-day percentage gain in almost six weeks. Oil rose to a more than two-month high amid hopes of a recovery in demand for fuel as lockdown measures are eased globally.