Geely Auto leads Hang Seng Index 1.5 per cent higher as investors shrug aside rising global coronavirus infections

Market sentiment was also boosted by strong activity in China’s manufacturing sector as economic rebound continued in the fourth quarter

The CSI300, which tracks the biggest companies on Shanghai and Shenzhen bourses, closed 0.5 per cent higher

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Hong Kong’s Causeway Bay is busy as usual despite concerns surrounding the coronavirus pandemic. Investors pushed up the city’s benchmark index higher on Monday. Photo: Xiaomei Chen

Published: 11:08am, 2 Nov 2020Updated: 5:06pm, 2 Nov 2020

Hong Kong and China markets started the first trading day of the month on a positive note following a sell-off last week, as investors shrugged off rising global coronavirus infections.

Market sentiment was also boosted by strong activity in China’s manufacturing sector last month, indicating that the nation’s robust rebound from the pandemic had continued in the first month of the fourth quarter.

The Hang Seng Index rose 1.5 per cent to 24,460.01, after falling 2 per cent on Friday for its first weekly decline in five. The CSI300, which tracks the biggest companies on Shanghai and Shenzhen bourses, rose 0.5 per cent. The index fell 1.7 per cent on Friday.

“The Hang Seng Index was oversold last week and has rebounded from the key support level at around 24,000,” said Kenny Wen, wealth management strategist at Everbright Sun Hung Kai.

China’s top infectious disease expert said over the weekend that a serious “second wave” of coronavirus infections is not expected in China. However, many countries in Europe were placed under a new round of lockdowns as the number of fresh cases continued to climb globally.