HSI Rises As Wall Street Rally Lifts Asian Markets

Hong Kong stocks finished the morning session on a positive note on Thursday following a surge on Wall Street fuelled by hopes that the coronavirus crisis could be reaching a peak.

The Hang Seng Index rose 0.7 percent, to 24,137 by the break.

On the mainland, the Shanghai Composite Index added 0.4 percent, to 2,827, while the Shenzhen Composite Index gained 0.7 percent, to 1,752.

The upbeat tone of the Wall Street extended into other Asian markets also.

Seoul and Singapore added more than 1 percent and Sydney almost 2 percent. Shanghai gained 0.5 percent, Taipei added 0.2 percent but there were small losses in Tokyo and Jakarta.

"Signs that the number of new daily coronavirus cases is plateauing is driving expectations that social distancing measures will be lifted soon in parts of the world," said Stephen Innes or AxiCorp. "Indeed, relaxing social distancing in the new 'risk-on' barometer."  

"Pretty much everywhere you look in financial markets there is renewed optimism."

However, while the Vix "fear index" has halved from its levels seen in mid-March there was still caution among observers with health experts stressing that any premature loosening of restrictions could accelerate the spread of the pandemic. (AFP)

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