Hong Kong stocks rise as Asian markets approach new peak, Meituan paces new trio in December index rebalancing
- Hang Seng Index advances after Asia-Pacific nations signed biggest trade pact in boost to post-pandemic outlook
- Meituan, Budweiser and Anta climbed after being proposed for inclusion in index rebalancing from next month
The Hang Seng Index advanced 0.9 per cent to 26,381.67 at the close of trading, halting a three-day slide. The Shanghai Composite Index climbed 1.1 per cent to 3,346.97, snapping up a four-day decline.
Markets across the region also chalked up substantial gains, with the Nikkei 225 leading the charge with 2.1 per cent advance, while South Korea’s Kospi Index rose 2 per cent. Today’s gains added to a powerful two-week surge this month, taking the MSCI Asia-Pacific Index within 2.2 points of breaking its previous record in January 2018.
Markets were also buoyed by China’s latest set of economic data for October. Industrial production grew by 6.9 per cent in October year on year, beating estimates, according to the statistics bureau on Monday. Retail sales grew by 4.3 per cent for a third straight month of expansion.
“Data from Asia has been impressive today, suggesting that RCEP is the icing on the cake of a region set to recover faster, and generally outperform, in 2021,” Jeffrey Halley, senior market analyst for Asia-Pacific at Oanda, said in a note to clients. The RCEP pact among a widely disparate group of nations, he said, “is an achievement in itself.”
Meituan gained 3.7 per cent while Anta Sports and Budweiser Brewing APAC each jumped 5.9 per cent. The trio were included as new Hang Seng Index members in a rebalancing exercise. Swire Pacific slumped 2.1 per cent as the stock will be kicked out.
Trump bans US investments in what he calls Chinese ‘military-controlled’ companies
On the mainland, port operators and related stocks rallied on the back of the RCEP trade agreement. Jiangsu Lianyungang Port and Bohai Ferry Group soared to the daily cap of 10 per cent, while Jinzhou Port rose 8.1 per cent. All are listed in Shanghai.
Liquor stocks rose on the back of strong economic recovery and continued containment of Covid-19 in China. Shanxi Xinghuacun Fen Wine Factory surged by 9.2 per cent to 273.21 yuan. Kweichow Moutai, the world’s most valuable liquor stock, added 1.5 per cent to 1,730.05 yuan.
“Investors are still taking a wait-and-see attitude and leaning cautious, it would be too optimistic to assume that no more such incidents will happen in the next two months when Trump is still in office,” said Chi-Man Wong, head of research at China Galaxy International Securities.