Local Shares Rally On Covid Recovery Optimism

The Hang Seng Index put on solid gains on Wednesday, leading markets in the region, as investors pinned their hopes on government stimulus efforts fuelling a global economic recovery from the coronavirus pandemic.

The local blue-chip index breached the 27,000 mark, finishing up 578 points or nearly 2.2 percent at 27,147.

Turnover was HK$153.3 billion.

Alibaba continued its rally, soaring 6.4 percent to become the top performer on the index. Heavyweight Tencent and Meituan each climbed more than 5 percent.

Hong Kong Exchanges and Clearing and AIA each reached new highs. HKEx wrapped up the day nearly 3 percent higher at HK$425.20, while AIA was up 2.2 percent at HK$96.30.

Across the border, the Shanghai Composite Index added 1 percent, while the blue-chip CSI300 index climbed 1.4 percent. The Shenzhen Composite Index put on 1.3 percent.

MSCI’s index on Asia-Pacific shares, excluding Japan, rose more than 1 percent to hit another record high.

South Korea’s Kospi put on almost 2 percent, marking its last trading day of the year with a new high. Overall, the Kospi gained more than 30 percent this year.

Taiwan also logged another record high, jumping 1.5 percent. Singapore was also up.

But in Japan, the Nikkei retreated 0.5 percent, and Australia gave up 0.3 percent.