Local Stocks Up At Start, Build On Wall Street Lead

Hong Kong stocks opened on a positive note on Friday morning, building on a strong lead from Wall Street and reversing some of the previous day's losses.

The Hang Seng Index added 0.5 percent, or 134 points, to 28,584.

Across the border, the benchmark Shanghai Composite Index edged up 0.1 percent to 3,510, while the Shenzhen Composite Index on the mainland's second exchange rose 0.3 percent to 2,336.

Elsewhere in the region, markets fluctuated as investors battled to track the rally on Wall Street, which came in response to another positive read on US jobless claims. Sentiment continues to be driven by inflation fears and optimism over the economic recovery.

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.

In early trade, Tokyo, Singapore, Wellington, Taipei and Jakarta were up, though Sydney, Seoul and Manila dipped.

Investors in the region are also keeping their eyes on spiking virus infections in several countries that are forcing some governments to impose fresh, economically damaging containment measures. (AFP)