HK Joins Asian Rally As Coronavirus Numbers Fall

Stocks in Hong Kong ended with a healthy rally on Thursday, in line with an advance across Asia, with investors cheered by signs that the rate of new coronavirus infections was slowing.

The Hang Seng Index jumped 1.4 percent, to 24,300.

On the mainland, the Shanghai Composite Index added 0.4 percent, to 2,825 and the Shenzhen Composite Index gained 0.9 percent, to 1,755.

Singapore and Seoul rose more than 1 percent apiece, Sydney and Mumbai each jumped more than 3 percent and Bangkok climbed more than 2 percent.

But Tokyo was barely moved while there were small losses in Taipei and Wellington.

"Signs that the number of new daily coronavirus cases is plateauing is driving expectations that social distancing measures will be lifted soon in parts of the world," said Stephen Innes of AxiCorp. 

However, while the Vix "fear index" has halved from its levels seen in mid-March there was still caution among observers, with health experts stressing that any premature loosening of restrictions could accelerate the spread of the virus.

The markets are also building up to be a crucial day for investors, with new unemployment benefit claims due to be released after a whopping 10 million were clocked up in the previous two weeks.

There is also a much-anticipated teleconference between Opec and other major oil producers, which comes as oil wallows at near-two decade lows, with Russia and Saudi Arabia's price war compounding slack demand caused by the virus.

Russia gave cause for hope Wednesday when it said it was willing to cut output by about 1.6 million barrels a day, or about 15 percent. 

A cut of just 10 million barrels a day "might not trigger much of a rally and probably eventually see selling pressure drive crude back to the low-mid $20s", said Edward Moya, senior market analyst with Oanda.

"The following 24 hours will be critical for global oil prices," he said.

Both main oil contracts were enjoying healthy gains Thursday. (AFP)