Hong Kong Shares Claw Back, Asian Markets Mixed

[12:34 PM, 3/26/2020] +852 6194 9339: Hong Kong stocks went into the break flat on Thursday, recovering early losses as investors cheered news that US senators had passed a massive stimulus bill aimed at supporting the world's top economy.

The Hang Seng Index ended the first session at 23,527.

On the mainland, the benchmark Shanghai Composite Index eased 0.2 percent to 2,776, while the Shenzhen Composite Index fell 0.3 percent to 1,709.

Tokyo, which soared by almost a fifth in three days, ended the morning session 3.8 percent lower, while Seoul eased 0.2 percent.

Singapore sank more than 2 percent after data showed the city-state's economy suffered its worst quarterly contraction since the financial crisis more than a decade ago, giving global investors an early insight into the economic effects of the pandemic. 

Singapore is considered a bellwether for trade-reliant Asian countries.

There were some gainers across the region, with Sydney up more than 1 percent, while Jakarta, Manila, Kuala Lumpur and Wellington climbed between 2.5 and 5.5 percent.

But while the US bill provides much-needed support, observers continue to err towards caution with most now expecting the global economy to plunge into recession as countries go into lockdown, turning off the growth taps.

"While this is good news... it's impossible to gauge the ultimate economic impact of the Covid-19 pandemic for weeks, possibly months, and until that point, the sustainability of any rally in oil or equity markets is questionable and suggests the current high level of volatility will likely extend," said AxiCorp's Stephen Innes.

"All the stimulus chatter will fade if the Covid-19 headcount curve goes vertical. The reality is the 'Big Bazooka' sway is impossible to sustain, and not to mention the surprise effects greatly diminish. Ultimately, policy is harder to maintain the more protracted virus outbreaks continue." (AFP)

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