Hong Kong Stocks Join Asian Rally, US Dollar Slips

Hong Kong shares ended Friday morning more than 1 percent higher, building on the week's rally that has been fuelled by a gigantic US stimulus and monetary easing measures. 

The Hang Seng Index climbed 1.2 percent, to 23,634.

On the mainland, the Shanghai Composite Index rose 1.4 per cent to 2,803, while the Shenzhen Composite Index on China's second exchange added 1.1 per cent, to 1,720.

Other Asian equities also rallied again and the US dollar extended losses, with traders buoyed by government and central bank pledges to prop up the global economy as the coronavirus sends countries into lockdown.

Tokyo went into the break 1.2 percent higher, while Seoul, Wellington and Taipei also rose more than 1 percent.

Singapore jumped 2.5 percent, Manila more than 3 percent and Jakarta almost 7 percent. Sydney, however, fell 2 percent.

Despite the painful toll the disease is inflicting on lives and economies, markets are on course to end the week with healthy gains following a barrage of stimulus and monetary easing.

Dan Skelly at Morgan Stanley Wealth Management said stocks, which have been clobbered in recent weeks, were showing signs of forming a bottom.

"While we do believe this will be possibly the sharpest recession in history, it may also be the shortest, so there is room to be optimistic for a second-half rebound," he told Bloomberg TV.

The Mexican peso jumped more than 3 percent, while the South Korean won was more than 1 percent higher. Australia's and New Zealand's dollars were each up around 2 percent.

Oil enjoyed an upturn after taking another severe hit on Thursday from ongoing worries about the impact of the virus on demand as well as the price war between major producers Russia and Saudi Arabia. (AFP)

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