Hong Kong: Stocks mark 10-month closing high on recovery hopes

[HONG KONG] Hong Kong stocks climbed on Wednesday to a 10-month closing high, tracking gains in other Asian markets, as investors bet on a strong global economic recovery next year.

At the close of trade, the Hang Seng index was up 578.62 points or 2.18 per cent at 27,147.11, its highest close since Feb 21. The Hang Seng China Enterprises index rose 2.05 per cent to 10,662.93.

The sub-index of the Hang Seng tracking energy shares dipped 0.8 per cent, while the IT sector rose 4.75 per cent, the financial sector ended 1.32 per cent higher and the property sector rose 1.41 per cent.

The top gainer on the Hang Seng was Alibaba Group Holding with a rise of 6.4 per cent, while the biggest loser was China Unicom Hong Kong with a drop of 2.38 per cent.

Convictions that global monetary authorities will continue to pump liquidity into the banking system to support the pandemic-stricken economy underpinned risk assets.

Investors shrugged off a move by US President Donald Trump's administration to strengthen an executive order barring US investment in Chinese firms with alleged military backing.

Global index publisher FTSE Russell said it might drop more Chinese companies from its global benchmarks in response.

China's main Shanghai Composite index closed up 1.05 per cent at 3,414.45, while the blue-chip CSI300 index ended up 1.4 per cent.

Around the region, MSCI's Asia ex-Japan stock index was firmer by 1.08 per cent, while Japan's Nikkei index closed down 0.45 per cent.

The yuan was quoted at 6.5338 per US dollar at 8.22am GMT, 0.06 per cent weaker than the previous close of 6.53.

REUTERS