Sunny Optical, Geely Auto propel Hong Kong stocks to two-month high ahead of US presidential election
- The Hang Seng Index closes 2 per cent higher at 24,939.73
- Shanghai Composite Index gets a boost from a continuing recovery in corporate earnings
Hong Kong and China stocks both rose, with the city’s benchmark closing at a two-month high ahead of the US presidential election.
The Shanghai Composite Index added 1.4 per cent to 3,271.07. The onshore stocks got a boost after a continuing recovery in corporate earnings. Third-quarter net income for the mainland-traded companies increased 17 per cent from a year earlier, reversing a 12 per cent decline for the previous three-month period, according to Haitong Securities.
Stocks in other major markets in Asia also rose, taking their cue from a moderate gain in US equities overnight. American investors rotated to sectors that would benefit from fresh stimulus including oil and material producers, while a volatility index remained at the elevated level. Polls continue to show Democrat Joe Biden ahead, though battleground states remain tight.
“Financial centres around the world [are] expecting a Democratic sweep, which is the key to unlocking Congress’ ability to deliver significant fiscal stimulus and benefit the US and global markets at a time of need,” said Stephen Innes, a strategist at Axi.