HSI Edges Higher As Regional Rally Falters

Local shares went through choppy trade on Monday, posting modest gains, while markets elsewhere in the region were mixed as investors got cautious with impeachment pressure growing on outgoing US president Donald Trump and escalating tensions between Beijing and Washington.

The Hong Kong benchmark breached 28,000 at open and jumped almost 300 points at one stage. But it failed to hold on to those gains and dipped into negative territory in the afternoon.

The index ended the day slightly higher, up 30 points or 0.1 percent at 27,908.

Turnover reached a robust HK$254.1 billion.

Despite pressure from US sanctions, China Mobile soared as much as 8 percent before finishing up 5.8 percent to become the day’s winner on the blue-chip index.

China Unicom also jumped more than 5 percent and China Telecom added 1.5 percent.

Mainland property stocks outperformed. China Overseas Land and Investment surged 5.4 percent, China Resources Land advanced 4.2 percent and Country Garden gained more than 2.5 percent.

Heavyweight Tencent climbed 3 percent after it was excluded from the Washington’s latest blacklist on firms it deems as being linked to the Chinese military.

Geely sank 2.6 percent after carmaker announced that it has nothing to do an electric vehicle tie-up between its parent, Zhejiang Geely Holding Group Company, and Baidu.

Markets across the border were dragged by a jump in domestic Covid cases and ongoing Sino-US tensions. The Shanghai Composite Index and the blue-chip CSI300 index each declined about 1 percent. The Shenzhen Composite index slid 1.8 percent.

Around the region, the Kospi in Seoul trimmed 0.1 percent. Australia retreated 0.9 percent. Singapore was down about 0.2 percent. But Taiwan edged up 0.6 percent to touch another new high. Japan was closed for a holiday.