HSI Drops As Virus Rebound Scare Spooks Investors

Hong Kong shares finished on a negative note following the previous day's healthy gains, with traders keeping a nervous eye on a pick-up in coronavirus infections in some countries as lockdown restrictions ease.

The Hang Seng Index slipped 0.5 percent, to 24,781.

On the mainland, the Shanghai Composite Index rose 0.3 percent, to 2,979 while the Shenzhen Composite Index was flat, at 1,947.

Tokyo and Singapore each lost 0.1 percent, while Manila also ended in the red.

Sydney added 0.2 percent, Mumbai added 0.5 percent and Taipei put on 0.4 percent with Wellington and Jakarta more than 1 percent higher.

Seoul climbed 1.5 percent with help coming from a report that North Korean leader Kim Jong-un has suspended plans for military action against the South in an apparent easing of tensions just over a week after Pyongyang blew up a liaison office.

While governments and central banks have provided a wall of cash to support markets, investors are walking a tightrope between hopes the easing of restrictions will lead to a rebound and the possibility that looser measures will inflame the pandemic again.

"Through the lens of survey data, at least for now, the world's essential economies are seeing a V-shaped and coordinated rebound that looks set to (continue) through the summer in the northern hemisphere," said Stephen Innes at AxiCorp. "Fingers crossed a second wave super spread does not land in our lap."

However, there are growing concerns of a relapse in some countries that had been opening up, with Tokyo governor Yuriko Koike on Wednesday warning a number of new cases had been found at one workplace. (AFP)