Hong Kong Stocks Gain, Shanghai Claws Back

Hong Kong stocks went into the break with more gains on Wednesday on continued hopes that the worst of the pandemic has passed and as governments slowly open up their economies.

The Hang Seng Index added 0.7 percent, to 24,026 by the break.

On the mainland, the Shanghai Composite Index started with slide as markets reopened after a long holiday. But by noon break, it had clawed back and was up 0.1 percent, to 2,862, while the Shenzhen Composite Index gained 0.7 percent, to 1,776.

Most other equities also rose again, but cautiously, as countries begin to slowly open up from lockdown.

Seoul gained 0.8 percent and Singapore put on 0.9 percent. There were also gains in Taipei, Jakarta and Wellington, though Sydney dropped 1 percent.

Fears of a second wave of contamination as the lockdown eases was keeping traders on their toes.

"It is absolutely dependent on what happens with respect to infection rates and whether there is the so-called second wave," Andrew Wilson, at Goldman Sachs Asset Management, told Bloomberg TV.

"So as we ease these lockdowns there remains the risk that of course you then have to tighten up the controls. That's why governments around the world are going to be relatively cautious about how they ease these lockdowns." (AFP)

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