Hong Kong: Shares close higher on vaccine hopes but Sino-US tensions cap gains

[HONG KONG] Hong Kong stocks tracked other Asian market higher as progress on Covid-19 vaccines boosted sentiment, although gains were capped due to a flare up in Sino-US tensions.

The Hang Seng index rose 0.4 to end at 26,505.87, while the China Enterprises Index gained 0.4 per cent to 10,452.50.

Asian markets were buoyed by optimism that imminent vaccinations would fuel economic recovery. US authorities voted overwhelmingly to endorse emergency use of Pfizer's coronavirus vaccine, while doses of a Covid-19 vaccine made by China's Sinovac Biotech are rolling off a Brazilian production line.

But the Hong Kong market is clouded by signs of deterioration in Sino-USrelationship as the US Federal Communications Commission (FCC) begun the process of revoking China Telecom's authorisation to operate in the United States.

REUTERS