Local Stocks Gain Ground As HSBC Rebounds

Hong Kong stocks ended Wednesday on a positive note after fluctuating through the day, with a healthy Wall Street lead offset by growing concerns about spiking coronavirus infections.

The Hang Seng Index added 0.11 percent, or 25 points, to 23,742.

Struggling banking giant HSBC dropped to as low as HK$27.5 at one point before reversing course, closing the day 0.17 percent higher at HK$28.75.

Across the border, the benchmark Shanghai Composite Index rose 0.17 percent, or 5 points, to 3,279, while the Shenzhen Composite Index on China's second exchange gained 0.83 percent, or 18 points, to 2,202.

Asian markets were mixed as spiking infection rates, new containment measures and still no US stimulus fuel concerns about economic recovery.

After a global rally since March's nadir, gloom has descended on equities this month, with uncertainty leading into November's US presidential election and ongoing China-US tensions adding to the mix.

Stephen Innes at AxiCorp said while central bank support had been crucial to an economic rebound, investors were now keen to see real signs of recovery.

"Although central banks can do more, equity markets have likely reached their multiple policy deluges' saturation point," he wrote in a note, "and as such, the stock markets might continue to struggle to make new highs until there are more positive signs of real economic growth."

Tokyo ended 0.1 percent down as investors returned from an extended weekend break, while Taipei, Singapore, Jakarta, Bangkok and Manila were also lower.

Sydney jumped more than 2 percent and Wellington eked out gains.

Mumbai and Seoul were flat. (AFP)