Hong Kong Stocks Higher On China GDP Data

Hong Kong stocks were higher on Friday after official data in China showed the coronavirus pandemic had not hit economic growth as badly as some had feared.

The Hang Seng Index went into the lunch break up 2.3 percent, or 554 points, at 24,560.

Mainland investors also cheered the news, with the benchmark Shanghai Composite Index rising 0.9 percent higher at 2,845 points in the morning.

The Shenzhen Component Index gained 1.4 percent to 10,614 points at midday.

New official data from the mainland showed a 6.8-percent contraction in the Chinese economy last quarter – the first negative growth reported since the country began logging quarterly data in the early 1990s.

The result was slightly better than the 8.2-percent fall forecast by economists in an AFP poll.

Other figures showed a sharp drop in domestic demand, with many shoppers staying at home and avoiding crowds due to fears of a resurgence in virus cases.

But on-year industrial production data, down just 1.1 percent last month, was a positive sign that the Chinese economy was returning to a position of strength, said AxiCorp chief market strategist Stephen Innes.

"The production side of the economy is normalising, and end-consumption will follow," he said in a note.

Tokyo was up by more than two percent in morning trade, while all other major Asian bourses were in positive territory. (AFP)