AIA, BYD, HSBC lead Hang Seng rebound as oil retreat eases inflation worries, Russia and Ukraine eye ceasefire

Hang Seng rebounded from a four-day rout as commodity prices eased, tempering concerns about global inflation and recession

AIA, HSBC and BYD led recovery as the benchmark index climbed from near a six-year low

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People walk past a bank’s electronic board showing the Hang Seng Index on March 9, 2022. Photo: AP

Published: 10:38am, 10 Mar 2022Updated: 4:39pm, 10 Mar 2022

Hong Kong stocks jumped by the most in three weeks from near a six-year low as oil and other commodity prices cooled while Russia and Ukraine pursued ceasefire plan.

The Hang Seng Index gained 1.3 per cent to 20,890.26 at the close, posting the biggest gain since February 16. The Tech Index climbed 1 per cent, while the Shanghai Composite Index added 1.2 per cent. Markets in Asia-Pacific rallied, as Japan’s Nikkei 225 advanced by 4 per cent.

All but 17 of the 66 Hang Seng Index members gained. AIA Group surged 4.8 per cent and HSBC gained 2.7 per cent, while BYD and Xinyi Solar added more than 5 per cent.

Crude oil tumbled 12 per cent overnight to near US$110 a barrel after the United Arab Emirates said that it will ask other OPEC members to overcome any shortage caused by Russia’s invasion of Ukraine while the US banned Russian oil imports. Gold also retreated from a 19-month high.

Meanwhile, a top foreign policy aide to Ukraine’s president said the country is open to discussing Russia’s demand for neutrality as long as it is given security guarantees.

“These developments saw traders breathe a sigh of relief, and investors proceeded to enthusiastically buy the dip,” said Michael McCarthy, chief strategy officer at Tiger Brokers Australia. “However, the elevated volatility may mean this is respite rather than resolution.”

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