HSI Continues Bull Run, Asian Markets Rally

Hong Kong stocks climbed more than 1 percent on Tuesday morning, extending their rally into a seventh day on hopes for an economic rebound as governments around the world ease lockdown restrictions.

The Hang Seng Index rose 1.3 percent, to 25,101.

On the mainland, the Shanghai Composite Index rose 0.6 percent, to 2,955 while the Shenzhen Composite Index gained 0.6 percent, to 1,867.

In Japan, profit-taking dragged Nikkei index 0.6 percent lower by lunch, while Seoul dipped 0.2 percent with geopolitical concerns re-emerging after North Korea said it was severing all official communication links with the South.

Sydney jumped more than 2 percent as investors there returned from an extended weekend break to play catch-up with Monday's regional advance.

Wellington slipped 1.7 percent after racking up gains of more than 3 percent on Monday.

While traders continue to buy into world markets on hopes the economy will bounce back, analysts urged some caution.

"The good news is that this shows central banks' effort to stabilise the market have worked," Tai Hui, at JP Morgan Asset Management, said in a note.

"The more worrying news is that global economic activity is far from where we were before the pandemic. The current risk rally is driven by investors' belief that the worst of this recession is behind us, which we agree with." (AFP)

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