Hong Kong, China stocks gain as markets in Asia bank on US stimulus support

Hong Kong stocks started strong but ended Monday with a small gain, while Shanghai Composite added 1 per cent

Local markets may be challenged by thinning liquidity as the Lunar New Year holiday approaches

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Electronic boards showing stock index and prices at a brokerage in Beijing. Photo: EPA-EFE

Published: 10:57am, 8 Feb 2021Updated: 5:04pm, 8 Feb 2021

Hong Kong and mainland China stocks rose, tracking gains in regional markets as investors look forward to a US$1.9 trillion coronavirus relief package in the US to spur a broader global recovery. Rare earth producers jumped again on concerns political unrest in Myanmar will squeeze supply.

The Hang Seng Index added 0.1 per cent to 29,319.47, after rising as much as 1.4 per cent on Monday. The benchmark rebounded 3.6 per cent last week. The Shanghai Composite rose 1 per cent to 3,532.45.

Power tools giant Techtronic Industries led gainers, rising 3.6 per cent to HK$126.40 while Macau casino operator Galaxy Entertainment appreciated 2.8 per cent to HK$68.60.

Hong Kong Exchanges and Clearing added 0.3 per cent to HK$518.50 on the back of its purchase of a 7 per cent stake in Guangzhou Futures Exchange on Friday.

Australia’s S&P ASX 200 climbed 0.6 per cent while Japan’s Nikkei 225 surged 2.1 per cent. The Kospi Index in South Korea fell 0.9 per cent. US equity futures signalled more gains, after the cash market charted new highs on Friday on stimulus hopes.

President Joe Biden and his Democratic allies in Congress forged ahead with their stimulus plan on Friday as lawmakers approved a budget outline that would allow them to fast track the stimulus package in coming weeks. Treasury Secretary Janet Yellen said it could promote full employment next year, according to news reports.