Hang Seng Index Rises On Cautious Optimism

Local shares narrowed gains but managed a positive finish on Monday, with investors optimistic that the US economic recovery was on track as they kept a watchful eye on outbreaks of coronavirus variants around the world.

The Hang Seng Index began the day slightly lower but was at one point up 350 points. It later gave back some of its gains, closing at 29,106 – up 136 points, or 0.5 percent, on turnover of HK$150.2 billion.

The biggest blue-chip winner was Sunny Optical – the handset equipment maker soaring 5.2 percent.

Geely jumped 4.8 percent, as carmakers rallied amid the opening of the Shanghai auto show this week.

Bucking the trend, Alibaba sank 1.5 percent. That came after reports over the weekend said its fintech sister firm, Ant Group, is looking into options for founder Jack Ma to divest his stake, in order to appease regulators scrutinising the company.

Ant has denied the reports.

Across the border, the Shanghai Composite Index rose 1.5 percent. New energy vehicle shares helped drive the blue-chip CSI300 index up 2.4 percent. The Shenzhen Composite index also climbed 2.4 percent.

Elsewhere in the region, the Nikkei in Tokyo, Seoul's Kospi and Sydney were flat. Taiwan advanced 0.6 percent. Singapore was up about 0.3 percent.