Tech Recovery, Wall Street Help HSI End Higher

Alibaba and other new economy companies staged a comeback on Tuesday to lead local shares higher, while regional markets were charged by optimism that a highly anticipated US aid package could be expanded.

The Hang Seng Index took its cue from Wall Street and opened higher. The local benchmark put on more gains during the day to finish up almost one percent or 253 points at 26,568, on turnover of HK$138.8 billion.

Alibaba, Xiaomi and Meituan each rallied more than five percent, and heavyweight Tencent advanced 2.2 percent.

Mainland banks also outperformed, with ICBC jumping almost three percent and China Construction bank adding 1.6 percent.

But mainland markets finished lower on profit-taking.

The Shanghai Composite Index lost half a percent, while the blue-chip CSI300 Index retreated 0.4 percent. The Shenzhen Composite Index shed 0.6 percent.

Around the region, the Nikkei in Japan surged to a 30-year high before closing up 2.7 percent.

Seoul’s Kospi inched up 0.4 percent, Australia gained half a percent and Singapore closed about a third of a percent higher.

Taiwan touched another record high before giving up those gains to end less than 0.1 percent lower.