Hong Kong stocks rise for fourth straight day after Trump calls off stimulus talks until after elections

Hang Seng Index gained 1.1 per cent to 24,242.86 along with most Asian markets

Traders in Hong Kong ignore Trump’s decision to suspend stimulus talks despite the Fed chairman saying government support was crucial for US economic recovery

3-MIN READ3-MIN

US President Donald Trump’s decision to call off fiscal stimulus talks pushed US markets lower. Photo: AFP

Published: 10:51am, 7 Oct 2020Updated: 5:09pm, 25 Oct 2020

Hong Kong stocks and other Asian markets defied a slump on Wall Street after US President Donald Trump halted stimulus talks until after the elections next month, but backtracked later saying he could sign a stand-alone bill to help ordinary Americans get immediate relief.

The Hang Seng Index rose 1.1 per cent to 24,242.86, extending gains for a fourth consecutive day.

Trump said on Tuesday that he had halted negotiations for a fourth stimulus package until after November 3. That came hours after US Federal Reserve chairman Jerome Powell warned that further government support was crucial for economic recovery of the world’s largest economy.

“The markets were not too worried about there not being economic stimulus coming from the US. It’s just a matter of when,” said Stanley Chan, director of research at Emperor Securities.

“Investors seem to be focusing on the fact that Trump can continue to participate in the elections, and are looking ahead to his second presidential debate with Biden. The financial markets are starting to think that there isn’t too much of a problem with either one of them becoming the next US president, as long as the results of the election aren’t contested,” said Chan.

Major US benchmarks fell overnight. The Dow Jones Industrial Average shed 1.3 per cent, while the S&P 500 dropped 1.4 per cent and the Nasdaq Composite lost 1.6 per cent.