HSI Edges Up As Asian Markets Welcome Stimulus

Hong Kong stocks went into the break with small gains on Wednesday, in line with rises in most of Asia and following a surge on Wall Street, fuelled by global stimulus pledges to mitigate the economic impact of the coronavirus.

The Hang Seng Index added 0.1 percent, to 23,281.

On the mainland, the Shanghai Composite Index rose 1.3 percent, to 2,814, while the Shenzhen Composite Index jumped 2.6 percent, to 1,749.

Most other Asian markets were up on the news of stimulus packages unveiled by the US and other countries, with Tokyo ending the morning up 1.7 percent, while Singapore and Wellington each jumped more than 2 percent.

But Sydney dropped more than 5 percent and Jakarta shed 3 percent down, while Taipei and Seoul also fell.

"The missing fundamental ingredient for a sustainable recovery in risk appetite is some evidence that the growth of global Covid-19 infection rates is peaking," said Paul O'Connor, head of multi-asset at Janus Henderson Investors. "Clearly, we are not there yet."

Economists now expect the US to slip into a recession, with warnings of a six percent contraction during the second quarter.

Crude edged a little higher but is flirting with 17-year lows as demand for the commodity falls off a cliff, while Saudi Arabia and Russia embark on a price war that has ramped up output. (AFP)

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