Hong Kong stocks rise alongside Asian markets as investors focus on Trump’s improving health

Hang Seng Index rises 1.3 per cent to 23,767.78, led by gains in finance and property stocks

Markets in the rest of Asia also end higher, with Japan’s Nikkei 225 increasing 1.2 per cent and Australia’s S&P/ASX 200 adding 2.6 per cent

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An electronic board showing the various stock market indices is seen in Central, Hong Kong. Photo: May Tse

Published: 10:32am, 5 Oct 2020Updated: 5:09pm, 25 Oct 2020

Hong Kong stocks gained along with other Asian markets, as investors focused on the improving health of US President Donald Trump who could be discharged on Monday.

The Hang Seng Index closed 1.3 per cent higher at 23,767.78 on Monday, following a two-day holiday. The benchmark had slumped 6.8 per cent in September for its first monthly decline since May.

Trump briefly left hospital on Sunday afternoon and took a quick drive past supporters gathered outside after testing positive for Covid-19 last week. The president’s medical team confirmed that his blood oxygen level had dropped suddenly twice since being taken to hospital, but said he could return to the White House as soon as Monday.

“Trump’s health problems were not as bad as expected,” said Stanley Chan, director of research at Emperor Securities. “Investors also think that Trump testing positive for Covid-19 may push the US Congress and White House to pass economic stimulus measures faster. This has given the markets a boost.”

Reports that Trump could be discharged from hospital as soon as Monday would reduce uncertainty around a possible delay to the US presidential election, said Stephen Innes, chief global markets strategist at Axi.

US President Donald Trump works in a conference room while receiving treatment for Covid-19 at Walter Reed National Military Medical Center in Bethesda, Maryland, on Saturday. Photo: Reuters