Hong Kong Stocks Rally On US Surge, China Data

Hong Kong shares ended Tuesday morning with strong gains following a surge on Wall Street, while traders welcomed data showing a surprise jump in Chinese factory activity.

The Hang Seng Index rose 1.1 percent, or 253 points to 23,428.

The benchmark Shanghai Composite Index was 0.4 percent higher at 2,758 points, while the Shenzhen Component Index rose 0.8 percent to reach 9,988 points at midday.

Tokyo went into the break up 0.8 percent, while Taipei added more than one percent.

Sydney, which soared seven percent Monday on its best day in history, added another two percent, while Seoul was up a similar amount.

Singapore, Manila, Jakarta and Wellington all rose more than two percent.

While the number of infections and deaths from the Covid-19 pandemic continues to rise, observers said traders appear to be getting used to the new normal, with some suggesting the sell-off in stocks may have seen its worst.

"Certainly we are seeing bottoming in the equity market," Jun Bei Liu of Tribeca Investment Partners told Bloomberg TV.

But she added it was "very hard to see equities rally away, on the basis that the infections are still getting worse and the employment numbers continue to track lower".

Adding to the more positive mood on trading floors was data showing China's manufacturing sector saw surprise growth in March, having been mauled in February as the country went into lockdown to tackle the virus.

China's Purchasing Managers' Index, a key gauge of factory activity, jumped to 52.0 from a record low 35.7 the month before. Anything above 50 is considered growth.

The National Bureau of Statistics said the number "reflects that over half of surveyed companies had improvements in their resumption of work and production from the month before".

But it stressed "it does not represent that our country's economic operations have returned to normal levels". (AFP)

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