HSI Up But Lags Mainland, Regional Gains

Hong Kong stocks finished slightly higher on Monday as hopes for a coronavirus vaccine were offset by concerns about a spike in local Covid infections, while mainland and regional shares posted solid gains.

The Hang Seng Index had surged more than 200 points during the day, but later pared gains to close just 34 points or 0.1 percent up at 26,486.

Turnover was HK$152 billion.

The top-gainer on the index was tech giant Xiaomi, which saw its shares surge over 8 percent ahead of its announcement on its latest earnings.

CSPC Pharmaceutical dropped half a percent, despite a 25 percent jump in net profit in the first three quarters.

Markets across the border posted strong gains to open the week, with the Shanghai Composite Index rising more than 1 percent.

The blue-chip CSI300 index closed at its highest in more than five years, surging 1.3 percent, boosted by gains in materials and energy stocks.

It was a similar story across the region. Singapore shares hit an 8-month-high during trading, after new data showed its economy is set to return to growth next year.

Officials at the Lion City forecast that its economy would expand by 4 to 6 percent next year, after expecting it to shrink around 6 to 6.5 percent this year.

South Korea surged nearly 2 percent. Taiwan inched up more than 1 percent, and markets in Japan were closed for a holiday.

To commodities, oil prices extended their gains, rising more than 1 percent during the day, as traders eyed a recovery in crude demand due to successful trials for the Covid-19 vaccines.