Hong Kong Stocks End Morning Higher

Hong Kong stocks finished Monday's morning session with small gains following a strong lead from Wall Street, with trader optimism boosted by signs of a slowdown in the rate of infections and deaths from coronavirus.

The Hang Seng Index rose 0.2 percent, or 39 points, to 24,419 by the break.

The Shanghai Composite Index was up by 0.3 percent at 2,847, while the Shenzhen Component Index rose 0.6 percent to 10,591.

Stock traders were in slightly more buoyant mood as governments start to consider how and when to ease lockdowns that have crippled the global economy.

Adding to the sense of hope was a report indicating promising research on a drug to treat coronavirus.

Seoul was up 0.1 percent, while Wellington added 0.4 percent. However, Tokyo went into the break 0.9 percent lower, while Sydney and Manila dropped one percent apiece.

There were also losses in Taipei, Singapore and Jakarta.

"The longer investors have to contemplate future economic issues while they wait for more countries to be on the downward slope of the pandemic curve, the more scope there is of risk assets pricing in a difficult future," Chris Iggo, of AXA Investment Managers UK, said.

Meanwhile, oil prices collapsed to more than two-decade lows as traders grow concerned that storage facilities are reaching their limits.

US crude benchmark West Texas Intermediate briefly plunged almost 20 percent to below US$15 – its lowest since 1999 – as stockpiles continue to build owing to a crash in demand caused by the Covid-19 pandemic.

Analysts said this month's agreement between top producers to slash output by 10 million barrels a day was having little impact on the oil crisis because of lockdowns and travel restrictions that are keeping billions of people at home.

ANZ said "crude oil prices remained under pressure, as projections of weaker demand weigh on sentiment".

"Despite the OPEC+ alliance agreeing to an unprecedented cut in output, the physical market is awash with oil," it said, referring to the Organization of the Petroleum Exporting Countries and non-OPEC partners. (AFP)