HSI Climbs 2 Percent As Asian Stock Markets Rally

Hong Kong stocks enjoyed another healthy rally on Tuesday, in line with an Asia-wide advance and following a surge on Wall Street, with traders cheered by signs the rate of coronavirus infections is slowing.

The Hang Seng Index climbed 2.1 percent, to 24,253.

On the mainland, the Shanghai Composite Index gained 2.1 percent, to 2,820 and the Shenzhen Composite Index jumped 3.2 percent, to 1,743.

Other Asian equities also rallied on reports that some governments began making plans to ease restrictions aimed at containing the disease.

Tokyo rose around 2 percent higher, while Seoul and Taipei each jumped 1.8 percent. Mumbai and Bangkok soared 6 percent, while Singapore piled on more than 3 percent.

Manila and Wellington also rose, though Sydney and Jakarta slipped.

"Falling infection and death rates from Covid-19 in the worst of the European and US epicentres has inspired markets that the worst of the outbreak is peaking," said Oanda’s Jeffrey Halley.

"Whether that is, in fact, the case or not... a world hungry for any good news has leapt on board the recovery trade with equities, in particular, outperforming."

Adding to the positive vibe were further measures to support economies around the world, including a trillion-dollar package in Japan and central bank moves in China.

While the mood is a little better on trading floors, analysts remained cautious.

"Still, the market will need to come up for air, as for the real economy to recover the pace of play will be dictated more by [governments'] willingness to relax social distancing measures, and the Covid-19 curve would probably need to flatten much more," said AxiCorp's Stephen Innes.

Crude prices were also lifted by hopes major producers will agree to cut output this week, while the pound clawed back some of its losses that came in response to news Prime Minister Boris Johnson was in intensive care. (AFP)