Hong Kong stocks rise on hopes of US economic stimulus, vaccine roll-out
- Hang Seng Index gained 1 per cent on Wednesday, its biggest daily increase in more than a month
- Shanghai Fosun Pharmaceutical soared 8 per cent after securing 100 million doses of BioNTech vaccine for use in China
The Hong Kong markets rose on Wednesday amid hopes that an economic stimulus package will be agreed upon in the United States, as well as progress on vaccine roll-outs.
“The markets are wholeheartedly banking on that deal to provide the ultimate footbridge to the vaccine roll-outs,” said Stephen Innes, chief global markets strategist at Axi.
Wall Street benchmarks gained overnight. The Dow Jones Industrial Average gained 1.1 per cent, while the S&P 500 and the Nasdaq Composite added 1.3 per cent.
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Shanghai Fosun Pharmaceutical, which has exclusive rights for the BioNTech vaccine in mainland China, Hong Kong and Macau, soared 8 per cent to HK$39. The Chinese drug maker announced on Wednesday that it had secured 100 million doses of the coronavirus vaccine for use in the mainland in 2021, according to a filing to the stock exchange. CSPC Pharmaceutical added 2.1 per cent.
Shenzhen-listed surveillance giant Hangzhou Hikvision, which is among the companies to be removed from MSCI indices, fell 1.5 per cent to 46 yuan on Wednesday. In Shanghai, supercomputer manufacturer Dawning Information Industry and satellite manufacturer China Spacesat, both of whom have also been blacklisted, fell 2.2 per cent and 1.4 per cent, respectively.
Three companies began trading on the Hong Kong and Shanghai bourses. Blue Moon Group, the detergent maker backed by Asian private-equity manager Hillhouse Capital, gained 13.1 per cent to HK$14.88 from its listing price of HK$13.16.
In Shanghai, Wuxi Hyatech, which manufactures aircraft parts, soared 355.1 per cent to 37.18 yuan from its initial public offering price of 8.17 yuan. Bestechnic Shanghai, which designs chips for audio devices, gained 123.4 per cent to 362 yuan from its listing price of 162.07 yuan.
Markets in Asia-Pacific also gained. South Korea’s Kospi added 0.5 per cent, while Japan’s Nikkei 225 gained 0.3 per cent. Australia’s S&P/ASX200 rose 0.7 per cent.