Hong Kong Stocks Lose Early Steam Amid Asian Rally

Shares in Hong Kong dipped on Tuesday following two days of healthy gains, though there was support from news that top China and US officials had discussed their trade pact and agreed to press ahead with it, despite tensions.

The Hang Seng Index dipped 0.5 percent, to 25,416.

On the mainland, the Shanghai Composite Index lost 0.2 percent to 3,378 while the Shenzhen Composite Index edged up 0.2 percent, to 2,282.

Tokyo ended the morning 1.7 percent higher while Sydney gained 0.7 percent.

Seoul, Singapore and Taipei were also more than 1 percent higher, with Jakarta and Wellington also well up.

Markets were already buoyant on growing optimism that a vaccine for the coronavirus is close, with Donald Trump said to be considering fast-tracking an experimental treatment from Britain that could be ready for use by November.

That followed news that the US Food and Drug Administration is looking to expand access to a virus treatment involving blood plasma from recovered patients.

"A vaccine and possible treatment raise hope that in the not-too-distant future, symptoms of Covid-19 infections may become relatively mild, like a cough and runny nose caused by influenza, and possibly the vaccine could even provide a cure," said Stephen Innes at AxiCorp.

"But in either outcome, the Covid-19 flu will no longer pose a significant health risk, and the economy could return to standard quicker. Indeed, the ultimate one-stop recession plugger could be but a trip to your local clinic." (AFP)

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