Hang Seng Index surges with Asian stocks on stimulus bets as Trump concedes defeat, Chinese telecoms slammed on index deletion

Hang Seng Index rose 1.2 per cent, while Shanghai Composite slipped 0.2 per cent; both measures completed a weekly gain of more than 2 per cent

Chinese telecoms stocks faltered after the New York Stock Exchange delisting plan, index compilers to remove trio from benchmarks

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Signs of China Telecom, China Mobile and China Unicom are seen during the 2018 China International Import Expo in Shanghai. Hong Kong and Asian markets follow gains in US equities as Trump concedes defeat in US election but major Chinese telecoms stocks falter on NYSE and index removal blows. Photo: AFP

Published: 11:08am, 8 Jan 2021Updated: 5:03pm, 8 Jan 2021

Hong Kong stocks rallied along with other Asian markets after President Donald Trump acknowledged his defeat in the November elections for the first time and pledged to ensure a smooth transition of power to Joe Biden. Chinese telecoms stocks slumped.

The Hang Seng Index gained 1.2 per cent to 27,878.22, bringing the rally in the first week of 2021 to 2.4 per cent. The Shanghai Composite slipped 0.2 per cent after a four-day advance, reducing the appreciation this week to 2.8 per cent.

Japan’s Nikkei 225 rose 2.4 per cent on Friday while South Korea’s Kospi added 4 per cent and Australia’s S&P/ASX 200 edged up 0.7 per cent.

Geely Auto paced gainers, shooting up 19.6 per cent to HK$33.25 while Hong Kong Exchanges & Clearing or HKEX rose 2 per cent to HK$452.

Trump said his focus “now turns to ensuring a smooth, orderly and seamless transition of power”, after the US Congress certified the election result on Thursday following a riot by his supporters that killed four. The Democrats also took control of the Senate after the Georgia run-off, easing the path for US stimulus spending and Biden’s legislative agenda.

“The Democrats have completed a clean sweep” despite hurdles created by Trump supporters, said Keith Wade, chief economist at Schroders. “This has significant implications for spending, taxes, economic growth and interest rates.” An enhanced spending bill could generate an extra US$900 billion fiscal boost, he said.