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Hang Seng, China stocks lead Asia gains as risk-on sentiment returns on coronavirus progress and on hopes oil deal will be reached
- US, France, Germany among countries seeing flattening of curve in cases or deaths
- HSBC rises for second day in Hong Kong after big tumble last week over dividends cancellation
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Hong Kong and China stocks led gains in major Asia markets on Tuesday, as investors bet on signs the world’s lockdowns are slowing the spread of the coronavirus pandemic.
The Hang Seng Index advanced 2.1 per cent, running up its first back-to-back of gains in nearly two weeks.
Macau casinos, Chinese airlines and sports retailers were among outperformers. Meanwhile, HSBC advanced 3.1 per cent, in its second day of gains. It tumbled three straight sessions last week after announcing it was cancelling its dividends.
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Meanwhile, the Shanghai Composite rose 2.1 per cent. (For in-depth coverage of the day in Hong Kong and mainland markets, see the Stocks Blog.)
China, which reported no new deaths for the first time since January, was the epicentre of the respiratory ailment’s outbreak. Now, after its lockdowns, its factories have been resuming operations, and analysts expect Chinese stocks will lead global markets out of virus-created troughs. More than half of the market capitalisation of the Hang Seng Index is of China-based companies.
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Meanwhile, sentiment was boosted by expectations OPEC and other top producers will reach a deal this week to reduce production, after a Saudi-Russia price war began right when the virus was already hammering demand.
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