HSI Resumes Rally, Shanghai Market Continues To Soar

Hong Kong stocks closed higher on Wednesday after a sharp sell-off the day before and putting them back on their recent upward trajectory despite a surge in virus infections around the world.

The Hang Seng Index rose 0.6 percent, to 26,129.

On the mainland, the Shanghai Composite Index rallied 1.7 percent, to 3,403 while the Shenzhen Composite Index climbed 1.9 percent, to 2,198.

Other Asian markets were mixed, with Singapore adding 0.1 percent and Jakarta piling on 1.8 percent. There were also gains in Manila and Taipei.

But Tokyo finished 0.8 percent lower, while Seoul fell 0.2 percent and Wellington slipped 0.3 percent with Mumbai and Bangkok dropping 0.1 percent each.

Sydney sank 1.5 percent, with Australian traders spooked by the decision to impose a six-week lockdown in the second-biggest city of Melbourne – a major contributor to the national economy – as it struggles to control a new outbreak of the disease.

After "a five-day rally where the market's up quite a bit, it's not so surprising to have a little bit of a pause", Jeff Mills, at Bryn Mawr Trust, said.

"It's just sort of the natural movements of the market. You can't go up in a straight line every single day."

And Stephen Innes at AxiCorp added: "As summer trading gets under way, investors are more prone to book profits and move to the sidelines." (AFP)