HSI Finishes The Week Strongly, Shanghai Up

Hong Kong stocks finished higher on Friday after official data on the mainland showed the coronavirus pandemic had not hit economic growth as badly as some had feared.

The Hang Seng Index closed up 1.6 percent, at 24,380.

On the mainland, the Shanghai Composite Index rose 0.7 percent, to 2,838, while the Shenzhen Composite Index finished up 0.3 percent, to 1,750.

Most other Asian markets also posted healthy gains. Tokyo closed up 3.2 percent, with investors buoyed by overnight news that Donald Trump had laid out guidelines for a phased reopening of the US economy.

A big economic contraction on the mainland had already been priced into markets and Friday's data was "within expectations", said Yoshihiro Okumura of Chibagin Asset Management.

But on-year industrial production data, down just 1.1 percent last month, was a positive sign that the Chinese economy was returning to a position of strength, said AxiCorp chief market strategist Stephen Innes.

"The production side of the economy is normalising, and end-consumption will follow," he said in a note.

Other experts have cautioned that Chinese growth is unlikely to rebound soon, with depressed demand for exports as the rest of the world grapples with the pandemic. (AFP)