Hong Kong Stocks Rise Despite China-US Tensions

Hong Kong stocks rose more than 1 percent Wednesday as an easing of virus lockdowns and signs the disease is easing trumped concerns about brewing China-US tensions.

The Hang Seng Index added 1.1 percent, to 24,137.

Across the border, the Shanghai Composite Index rose 0.6 percent, to 2,878, while the Shenzhen Composite Index climbed 1.5 percent, to 1,790.

Seoul rose more than 1 percent, while Shanghai put on 0.6 percent and Wellington added 0.8 percent. Taipei was flat but Sydney slipped slightly.

Singapore put on 1percent, with Singapore Airlines surging as much as 21 percent at one point on hopes for a pick-up in business thanks to the easing lockdown measures. It pared the gains to sit around 10 percent higher in late trade.

Mumbai soared more than 1 percent on stimulus hopes following data showing India's factory and services activity collapsed in April.

Observers are keeping tabs on China-US relations after President Donald Trump hit out at Beijing over its handling of the pandemic, sparking fears of a renewal of the economic superpowers' trade war that hit markets last year.

"Worries that China could retaliate against the US virus and trade accusations are real," said Oanda's Jeffrey Halley. "If anything can undermine a peak virus rally, a US-China trade war would do the job nicely."

Oil markets were flat, having doubled since last Tuesday fuelled by hopes that demand will begin to pick up as people start going back out and start spending after the long-running lockdown in key economies. (AFP)