Hong Kong, Asian Stocks Climb, Tracking US Gains

Hong Kong stocks finished up for the third consecutive trading day on Tuesday following a surge on Wall Street fuelled by stimulus hopes and news US President Donald Trump had left hospital after testing positive for coronavirus last week.

The Hang Seng Index rose 0.9 percent, or 212 points, to 23,980.

Mainland Chinese markets were closed for a public holiday.

Asian stocks finished up, tracking gains on Wall Street. Tokyo closed 0.5 percent higher. Sydney, Seoul, Singapore and Wellington also enjoyed healthy gains while Taipei, Bangkok and Jakarta each jumped more than 1 percent.

Analysts pointed out that Trump's positive test for Covid-19 could be the jolt US lawmakers needed to finally agree a new rescue package.

Talks were revived last week with a series of phone calls and an in-person meeting between Treasury Secretary Steven Mnuchin and Democrat House Leader Nancy Pelosi. The speaker's deputy chief of staff Drew Hammill said the two planned to hold another call on Tuesday.

"Investors are likely running with the idea that recent data and President Trump's first-hand experience with the virus increases the odds of another fiscal package," Adam Phillips, at EP Wealth Advisors, said. "It is becoming harder to deny the need for additional fiscal support."

OANDA's Jeffrey Halley said that "expectations are undeniably rising that compromise will be reached" but he added that with traders piling back into stocks owing to a fear of missing out on the rally "I dread to the see the correction" if no deal is struck. (AFP)