Hong Kong stocks post first weekly gain in June as investors hail US spending plans as recovery tonic
- Hang Seng Index stemmed a three-week losing streak in a wild ride as US events dominate trading sentiment
- Analysts are still cautious on local market outlook amid tighter liquidity conditions and lingering regulatory clampdown in China
The Hang Seng Index climbed 1.4 per cent to 29,288.22 at the close of Friday trading, the highest level since June 2. The benchmark logged a 1.7 per cent gain since June 18, snapping a three-week losing streak. China’s Shanghai Composite Index added 1.2 per cent, posting a 2.3 per cent win from a week ago.
Meituan and Budweiser Brewing were the biggest gainers among the 58-member Hang Seng gauge, rising more than 4 per cent.
“The positive market tone recognises the potential growth benefits of the compromise,” Kerry Craig, a strategist at JPMorgan Asset Management, said in a note to clients. “We have more clarity on the fiscal outlook. We continue to expect progress on further fiscal stimulus in the months to come.”
Local stock investors were put through a wild ride earlier this week, though, after surprising hawkish comments by some Federal Reserve officials on interest rates reignited taper tantrum and diminished risk appetite. China’s market-based loan prime rate has remained unchanged this month, assuaging concerns about tightening liquidity.
On the mainland, Shanghai International Airport rallied 4.5 per cent to 51.07 yuan on a plan to inject the Shanghai Hongqiao International Airport business into the listed entity. The stock resumed trading after a two- week suspension for the announcement.
Three companies all rose on their first day of trading in China. Zhejiang Cayi Vacuum Container surged 308 per cent from the initial public offering price in Shenzhen. Changchun BCHT Biotechnology, a vaccine maker, jumped 226 per cent and Zhejiang Shaoxing Rural Commercial Bank gained 44 per cent.