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Hong Kong, other Asia stock markets gain as traders see progress on coronavirus, like Donald Trump signing stimulus
- Latest data out of China on industrial profits was awful, but investors are looking forward, says analyst Alan Li
- Property stocks, new economy stocks rally in Hong Kong
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Hong Kong and other Asia-Pacific stocks gained at the start of the week, with sentiment boosted by President Donald Trump signing a US$484 billion virus-relief bill and US and European countries beginning to loosen quarantine restrictions.
Hong Kong stocks were strong coming out of the gate, while mainland stocks mostly shrugged off fresh data out of China showing its industrial profits plunged 34.9 per cent in March year-on-year – far more than the 10 per cent contraction economists surveyed by Bloomberg expected. But, as with other recent data showing the damage of the virus to the world’s second-largest economy, traders set their sights ahead.
“Bad economic data in the first half is acceptable and expected by the market and already priced in,” said Alan Li, portfolio manager at Atta Capital. “People are looking forward to the recovery.”
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The Hang Seng Index gained 1.9 per cent, led by property stocks. New economy stocks also outperformed, including Ping An Good Doctor, China’s top online health platform, and e-pharmacy giant Ali Health.
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