HSI Extends Rally Ahead Of June 4 Memorial

Hong Kong stocks rose for a fourth straight day on Thursday as the easing of lockdown measures around the world continued to trump concerns about China-US tensions.

The Hang Seng Index climbed 0.2 percent, to 24,366.

There was also relief there was no trouble during the day on the streets of the city on the anniversary of the Tiananmen Square crackdown.

On the mainland, the Shanghai Composite Index dipped 0.1 percent, to 2,919 but the Shenzhen Composite Index gained 0.3 percent, to 1,852.

Tokyo rose 0.4 percent and Sydney added 0.8 percent with Seoul up 0.2 percent and Taipei 0.7 percent stronger, while Bangkok jumped more than 2 percent.

"Global equity markets have remained in a buoyant mood fuelled by the prospect of economies reopening while data releases have supported the notion that the worst of the economic downturn could be behind us," said Rodrigo Catril of National Australia Bank.

Manila soared more than 4 percent, taking its seven-day rally to 18 percent, as lawmakers prepare to push through a US$30 billion stimulus bill.

Mumbai was 1 percent lower, while Singapore and Jakarta were flat.

"Investors continue to cling to optimism for a speedy economic recovery from the pandemic and in anticipation of more stimulus from the EU," said AxiCorp analyst Stephen Innes.

"With economies emerging from lockdown, it seems markets are increasingly confident that the incredulous liquidity injections from central banks and governments alike will continue to flow into risk assets."

Still, China-US tensions remain on the table, and on Wednesday Washington ordered the suspension of all flights by Chinese airlines in and out of the United States. 

But China on Thursday said it would allow foreign airlines currently blocked from operating in the country to resume limited flights from June 8, lifting a de facto ban on US carriers.

Despite the continued niggling between the world's two superpowers, Ken Berman of Gorilla Trades said: "The two sides continue to stick to the 'phase one' trade deal, and analysts think that until the two sides ... start imposing direct trade measures, the risk to the still-fragile global economy remains low."

Oil markets slipped back after climbing to three-month highs on hopes for an extension to a massive output cut by major producers led by Saudi Arabia and Russia, who just a few months ago were locked in a market-crashing price war. (AFP)