HSI Tumbles As Covid Cases Continue To Surge In HK

Hong Kong shares tumbled on Wednesday following the previous day's rally and with investors spooked by a record jump in infections in the city that many fear could see stricter containment measures introduced.

The Hang Seng Index sank 2.3 percent, to 25,057.

On the mainland, the Shanghai Composite Index added 0.4 percent, to 3,333 while the Shenzhen Composite Index climbed 0.8 percent, to 2,251.

Tokyo shed 0.6 percent and Sydney lost 1.3 percent, while Singapore, Manila, Bangkok, Wellington and Jakarta were also down.

But Mumbai added 0.1 percent and Taipei put on 0.6 percent.

Morgan Stanley strategist Andrew Sheets said stocks would have trouble pushing much higher without a key driver.

"I'm more concerned going into the August, September period: what's going to then be the next catalyst to take the broader market higher?" he told Bloomberg TV, adding it was going to be "a tougher period for stocks".

The euro held gains against the US dollar following the EU agreement and was sitting at its highest levels since early 2019, while the Federal Reserve's ultra-low interest rates continue to help higher-yielding currencies including the Australian dollar, Indonesian rupiah and South Korean won. (AFP)