HSI Slips Into Red As Asian Markets Break Rally

Hong Kong stocks went into the break with losses on Thursday following a two-day rally with traders juggling worries over a second wave of infections and massive global stimulus and financial support.

The Hang Seng Index edged down 0.2 percent, to 24,427.

The Shanghai Composite Index edged up 0.1 percent, to 2,939 and the Shenzhen Composite Index was flat, at 1,903.

Tokyo was down 1 percent, while Sydney lost 1.6 percent after data showed a massive jump in Australian job losses.

Wellington was also down more than 1 percent after news the New Zealand economy suffered its worst contraction for almost three decades in the first quarter.

Seoul slipped 0.6 percent, Taipei eased 0.2 percent and Singapore was off 0.6 percent.

Analysts suggested there may also be some trepidation on trading floors about possible Democratic victories in November's US presidential and congressional elections, with Donald Trump's rival Joe Biden considered less likely to push such things as deregulation and tax cuts.

Trump's chances were dealt another blow by the release of excerpts from a book by former national security advisor John Bolton, which says the president pleaded with President Xi Jinping for help to win re-election in 2020.

"Bolton’s words do blunt Trump’s China strategy which he was likely to campaign hard on in the election," said National Australia Bank's Tapas Strickland.

"Either way, markets have started to assign probabilities of a Democratic clean sweep and what policies would likely emanate if they control three arms of government." (AFP)

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