Local Shares Finish Flat Amid Inflation Concerns

Hong Kong shares finished flat on Friday as traders weighed the prospect of a strong global economic recovery against concerns about the inflation it will bring and the possibility of tighter monetary policy.

The Hang Seng Index inched up 8 points to 28,458.

Across the border, the benchmark Shanghai Composite Index fell 0.6 percent to 3,486, while the Shenzhen Composite Index on the mainland's second exchange lost 0.5 percent to 2,319.

Markets across the region fluctuated as investors battled to track a rally on Wall Street that came in response to another positive read on US jobless claims, while sentiment was also driven by inflation fears.

The week was set to end on a mixed note despite data showing the number of people applying for US unemployment benefits fell for a third straight week to a new pandemic-era low, reinforcing expectations the recovery was well on track, helped by huge government and central bank support.

All three main indexes on Wall Street rallied, with investors for now putting aside their concerns that the expected surge in activity fuelled by reopenings and vaccines will cause prices to rocket and force the Federal Reserve to wind back its ultra-loose monetary policies.

And markets have seemingly already come to accept that some members of the Fed are keen to start talking about the possibility of such moves as the economy improves, taking that as an indication that the outlook is bright.

Tokyo, Sydney, Singapore, Wellington, Taipei, Manila, Mumbai and Bangkok all rose but there were losses in Seoul and Jakarta. (AFP)