Hang Seng Index Rebounds To Extend Gains

Local shares recovered from a morning dip on Wednesday to top 31,000, but some markets in the region pulled back from recent highs as rising US Treasury yields drew investors’ attention away from equities.

The Hang Seng Index dropped more than 240 points during the morning session but quickly recouped the losses and hit a 32-month high.

It finished up 338 points, or 1.1 percent, at 31,084, on turnover of HK$208 billion.

Hong Kong Exchanges and Clearing reached a new high of HK$570.50, before returning some of the gains to close up 2.8 percent at HK$563.50.

Heavyweight Tencent put on 1.7 percent. Alibaba added 1.1 percent. Meituan rallied 2.8 percent.

JD.com finished more than six percent higher after reaching a new record high of HK$419.8, after the mainland e-commerce firm’s logistics arm filed for an initial public offering in Hong Kong that reports say could raise at least US$5 billion.

Elsewhere, Taiwan jumped 3.5 percent after reaching a record high on its first trading day following the Lunar New Year holiday.

But in Japan, the Nikkei retreated 0.6 percent despite the country reporting its sharpest year-on-year growth in export in 27 months, as investors booked profit from the recent rally that drove the benchmark to 30-year highs.

Seoul’s Kospi gave up 0.9 percent. Australia and Singapore each dropped 0.5 percent.

In currencies, the greenback hit a five-month high against the yen as US bond yields rose on economic recovery hopes and inflation expectations.