Hong Kong Stocks Close Higher

Hong Kong stocks ended with gains on Wednesday, extending the previous day's surge, following a positive lead from Wall Street as hopes for the economic recovery overshadowed concerns about a second wave of infections.

The Hang Seng Index added 0.6 percent, or 137 points, to 24,481.

The benchmark Shanghai Composite Index rose 0.1 percent, or 4 points to 2,935, and the Shenzhen Composite Index on China's second exchange gained 0.3 percent, or 5 points to 1,903.

US Federal Reserve and Bank of Japan pledges of more support for troubled businesses, and reports of a new trillion-dollar US stimulus also lifted trading sentiment in the region, helping traders look past a worrying increase in infections from Tokyo to Beijing to Texas.

After an edgy start to the day, Asian markets extended Tuesday's big run-up.

Singapore and Seoul each gained 0.1 percent, and Sydney put on 0.8 percent. Mumbai edged up 0.5 percent and Taipei put on 0.2 percent, while Wellington soared more than three percent as the New Zealand government moved to tighten borders with military personnel following the import of two virus cases this week.

Tokyo lost 0.6 percent a day after a near-five percent surge and following a report showing Japan's exports and imports each fell more than a quarter last month.

"Any stock market weakness, failing a full-out border escalation in either geopolitical flashpoint or a super-spreader in China, could prove to be another opportunity to buy the dip," said AxiCorp's Stephen Innes.

"As turnaround in the market sentiment of late has been particularly striking, most have begun without any real catalyst, just a wall of money hitting the market en masse."

Optimism about the world's top economy was given an extra boost by data showing retail sales, crucial to any recovery, soared a forecast-busting 17.7 percent in May. That came after figures showed a surprise jump in jobs last month.

Meanwhile, an Oxford University study showed the steroid dexamethasone could cut the risk of death for people on ventilators by almost a third.

Still, Fed chief Jerome Powell, whose sobering summary of the outlook for the economy last week sparked a plunge across equities, warned in congressional testimony on Tuesday that the recovery would take some time.

While some recent indicators have been favourable, he told lawmakers there was "significant uncertainty" about the outlook and unless consumers feel confident Covid-19 has been defeated, "a full recovery is unlikely".

He added that the April-June quarter "is likely to be the most severe on record". (AFP)