Hong Kong Stocks Join Extended Asian Rally

Hong Kong stocks extended their recent rally into a third day on Tuesday, following a strong lead from Wall Street fuelled by fresh hopes for a new US stimulus package.

The Hang Seng Index added 0.8 percent, to 23,946 by the break.

Markets on the mainland are closed for a public holiday.

Tokyo went into the break 0.5 percent higher. Seoul, Singapore and Wellington were also up while Taipei and Jakarta both jumped more than 1 percent. Sydney was flat.

Investors are increasingly confident Joe Biden will beat Donald Trump, with recent polls in the US putting him between 10 and 14 points ahead nationally and leading in crucial swing states. Analysts pointed out that polls also suggest voters think Trump could have handled the pandemic better.

A big win for the former vice president would lower the chances of Trump challenging the result, removing more uncertainty from markets.

Traders are also eyeing a Democrat sweep of both houses of Congress, which could mean their previously proposed stimulus of more than US$3 trillion could be dusted off and pushed through.

"The market seems to have settled on the idea that a Biden win is bullish stocks... as the return of stability and the promise of (big government) spending outweigh any concerns about future tax hikes" that would be expected from the Democrats, said Axi strategist Stephen Innes. (AFP)

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