HSI Ends First Day Of 2021 On Positive Note

Mainland telecom companies rebounded from early big losses here in Hong Kong prompted by a US delisting decision, while the Hang Seng Index wrapped up the first trading day of the year with gains as vaccine optimism propelled regional shares to new highs.

The local benchmark began the day more than 100 points lower, but soon reversed course to reach a 10-month high as a number of blue-chips touched new peaks. It closed 241 points or 0.9 percent higher, at 27,472.

Turnover was HK$182.6 billion.

The mainland’s three biggest telco firms fell as much as nearly 6 percent during early trade on news that the New York Stock Exchange was delisting them. But they managed to recoup some of the losses later in the day. China Mobile trimmed 0.8 percent at close, China Telecom lost 2.8 percent and China Unicom put on 0.45 percent.

Heavyweights AIA and Hong Kong Exchanges and Clearing each rallied almost 4 percent. Tencent added 1.5 percent and Xiaomi jumped more than 6 percent to become the winner of the day, hitting a new peak of HK$35.4 before closing at HK$35.25.

Across the border, the Shanghai Composite Index went above 3,500 for the first time in three years. It finished up 0.9 percent, while the blue-chip CSI300 index climbed 1 percent. The Shenzhen Composite Index advanced 2.5 percent.

Elsewhere in the region, Seoul’s Kospi surged 2.5 percent above 2,900 for the first time, extending its winning streak to a sixth day. Taiwan also soared to another high and finished 1 percent higher. Australia gained 1.5 percent. Singapore put on half a percent. But Japan’s Nikkei gave up 0.7 percent on coronavirus concerns.

In commodities, oil prices touched multi-month highs as investors expected producers to cap output at current levels. Gold also rose to an eight-week high as a surge in virus cases drew money into the precious metal.