HK, Regional Stocks End Sharply Higher

Hong Kong shares rallied on Tuesday in line with an Asia-wide advance, after the US Federal Reserve announced a huge bond-buying package aimed at providing support to the US economy during the coronavirus crisis.

The Hang Seng Index added 4.5 percent, or 967 points, to close at 22,663.

The benchmark Shanghai Composite Index jumped 2.3 percent, or 62 points, to 2,722, and the Shenzhen Composite Index on China's second exchange gained 2.1 percent, or 34 points, to 1,666.

Japan's Nikkei index closed up 7.1 percent, receiving an extra lift by a Bank of Japan decision to embark on its own massive bond-buying scheme.

Seoul was up more than eight percent; Sydney, Singapore and Taipei all rose more than four percent, and Wellington lifted more than seven percent. Bangkok added more than one percent and Manila 0.7 percent, though Jakarta fell almost one percent.

The Fed had on Monday announced that it would for the first time back purchases of corporate bonds, backstop direct loans to companies and expand its asset purchases by as much as needed to stabilise financial markets.

The plan failed to inspire US traders, with all three main indexes on Wall Street sliding, before the big Asia rally.

“The pressure is now on Congress to get its act together and provide the support that the Fed cannot do — helping the vulnerable people who face the biggest health and economic consequences," said James Knightley of ING in a report.

“The risk is that this wall of support from the Fed and the positive reaction in markets may give Congress a sense that it has more time and the pressure to deliver a package is reduced,” Knightley said. (AFP, AP, Reuters)