Hong Kong Stocks Return To Positive Territory

Hong Kong shares closed on a positive note on Wednesday as traders welcomed factory data indicating China's economy continues to recovery from a pandemic-induced slowdown.

The Hang Seng Index added 0.79 percent, or 183 points, to 23,459.

Yet in a reminder of the challenges facing the local economy, government figures released after the market closed showed Hong Kong retail sales have now dropped for 19 months in a row. Total sales value in August suffered a 13 percent decrease year on year amid the third wave of local coronavirus cases, and for the first eight months of 2020 sales were down by more than 30 percent from a year ago.

A government spokesman did say that while the business environment remains difficult, local consumption sentiment could improve further if the outbreak continues to stabilise.

Stocks across the border were flat. The benchmark Shanghai Composite Index slipped 0.2 percent, or 6 points, to 3,218, while the Shenzhen Composite Index on China's second exchange added 1 point to 2,149.

And Asian stocks were generally lower as the ever-present gloom of rising virus infections and deaths continues to dampen the mood on trading floors, as dealers fret over the re-imposition of containment measures in key economies.

There were steep losses in Tokyo, down more than 1 percent, and Sydney, more than 2 percent, while Singapore, Jakarta and Bangkok were also in the red.

By contrast, Mumbai, Taipei, Manila and Wellington edged up.

Most observers were left disappointed with the US presidential debate between Donald Trump and Joe Biden, which descended into a shouting match with little of substance emerging from either man.

Aaron Kall, a presidential debate specialist at the University of Michigan, said: "This will go down as one of the worst debates in history."

"The market is starting to price in potentially a blue sweep," Jimmy Chang, at Rockefeller & Co LLC, told Bloomberg TV, referring to Democrats winning the White House and both houses of Congress. He added that while such a scenario could lead to higher taxes, it would also likely see a bigger stimulus package being passed. (RTHK & AFP)