HSI Joins Asian Rally As Virus Death Rates Fall

Hong Kong stocks ended Monday with healthy gains, lifted by signs that new infections of coronavirus are slowing in some of the worst-hit countries, while energy firms were boosted by last week's surge in oil prices.

The Hang Seng Index rose 2.2 percent, to 23,749. The mainland markets were closed for a holiday.

Most other Asian markets rose reports of falling death rates provided some much-needed hope in the battle against the coronavirus, though oil prices dipped after a meeting of top producers was delayed.

Tokyo, Sydney and Manila all rose more than 4 percent, while Seoul, Singapore and Jakarta gained almost 4percent. Taipei added 1.6 percent.

"Focus in markets will now turn to the path out of lockdown and to what extent containment measures can be lifted without risking a second wave of infections," said National Australia Bank's Tapas Strickland.

However, observers remain cautious as the US enters what US President Donald Trump said would be "a time that's going to be very horrendous" with "some really bad numbers".

Erik Nielsen, of UniCredit SpA, said: "There is light at the end of the tunnel but it's still a long tunnel."

Attention this week will be on a planned meeting of Opec and other key crude producers aimed at easing a supply glut that has sent oil prices crashing.

"If the Americans don't take part, the problem which existed before for the Russians and Saudis will remain -- that they cut output while the US ramps it up, and that makes the whole thing impossible," Fyodor Lukyanov, a Kremlin adviser, said.

But even if a deal is reached, there is widespread scepticism that suggested cuts of 10 million barrels a day will be enough to help the oil market, owing to a collapse in demand caused by the pandemic.

"The likelihood of a deal being done is extremely low," Daniel Hynes, at Australia & New Zealand Banking Group, said. "Certainly the type of agreement you'd need to stabilise the market is a long shot given how much demand has been hit." (AFP)