Hong Kong’s Hang Seng Index completes longest winning streak in 14 months on recovery optimism
- Trading halted in shares of Cathay Pacific pending announcement as the Post reports carrier will receive relief package totalling HK$39 billion from the government and shareholders
- Hang Seng Index has gained 9.1 per cent this month
Hong Kong’s stocks climbed for a seventh day, with the benchmark capping the longest rising streak in 14 months, on optimism that a global recovery from the fallout of the coronavirus is gathering pace.
US equities extended gains in overnight trading, with the Nasdaq Composite Index closing at a record, on optimism about a quick economic recovery after many parts of the country lifted the shutdowns that had been imposed to contain the spread of the coronavirus.
Still, Asian stocks traded in a mixed note, as Japan’s Nikkei 225 index dropped and Australian’ S&P/ASX 200 Index surged more than 2 per cent in a catch-up play after being shut a day earlier.
“Risk assets are enjoying strong momentum now – this could persist for some weeks,” said Tai Hui, a strategist at JPMorgan Asset Management in Hong Kong. “But the risk of a correction will rise if investors continue to price in a rapid recovery, especially for sectors that are vulnerable to another wave of infections or an escalation of tension between the US and China.”