HK Stocks Close Higher Led By Job-axing Cathay

Hong Kong stocks climbed on Wednesday, led by Cathay Pacific which finished more than 2 percent after the airline announced a massive restructuring plan, cutting thousands of jobs.

The Hang Seng Index had opened higher and rose as many as 300 points during trading.

It later pared gains to close more than 0.7 percent or 184 points higher at 24,754.

Market turnover was HK$109 billion.

Cathay stocks surged as much as 6 percent in the morning after its announcement, hitting a five-week high. They later gave up some of those gains, finishing at HK$5.85.

Other airlines also finished higher. The state-owned carrier Air China, which owns a 30 percent stake in Cathay Pacific, rose by almost 2 percent.

Markets across the border closed lower, dragged down by profit-taking in new-energy vehicle and technology shares due to their high valuations.

The Shanghai Composite Index lost around 0.1 percent and the blue-chip CSI-300 index was flat.

Most Asian markets headed north, cheered by gains on Wall Street overnight.

Seoul is on a three-day winning streak, up half a percent, as investors held out optimism for progress in US stimulus talks.

Tokyo added about 0.3 percent, while Taipei saw gains and Singapore was flat.

As for commodities, oil prices slipped after a surprise build-up in US crude stockpiles stoked concerns about a global supply glut.

And gold prices gained over renewed optimism that the US lawmakers would be able to reach an agreement on a coronavirus relief package.