HSI Closes Higher, Fuelled By Risk Appetite

Optimism that a fiscal aid package could come before Christmas in America and a pledge by the US Federal Reserve to continue its backing for the world’s largest economy boosted risk appetite on Thursday, driving Hong Kong and some Asian shares higher and sending the greenback lower against its peers.

Locally, the Hang Sang Index gained 218 points, or 0.8 percent, to close at 26,678, on turnover of nearly HK$130 billion.

The top two blue-chip gainers were biotech companies. Sino Biopharmaceutical surged 7.8 percent and Wuxi Biologics jumped 6.5 percent.

Most major tech shares also outperformed, with heavyweight Tencent putting on 2 percent, Alibaba climbing 2.9 percent and Meituan up 2.2 percent.

Across the border, the Shanghai Composite Index breached the 3,400-mark and finished 1.1 percent higher. The blue-chip CSI300 index logged a fourth straight session of gains, putting on 1.3 percent. The Shenzhen Composite Index added 0.9 percent.

Around the region, Japan’s Nikkei inched up 0.2 percent, hovering close to its 29-year peak.

Better-than-expected employment data in Australia pushed the ASX200 up 1.2 percent to its highest close in almost 10 months.

But troubled by its coronavirus situation, South Korea’s Kospi ended marginally lower.

Taiwan and Singapore also dipped into negative territory, each giving up more than 0.3 percent.

In commodities, oil hit a nine-month high thanks to a fall in US crude stockpiles and optimism over a stimulus deal in Congress.

And the US dollar plunged to 2 1/2-year lows as traders favoured riskier currencies.