Hong Kong Stocks Rise, But Jitters Remain

Hong Kong shares ended higher on Tuesday after local blue chips have recovered partially following a four-day rout that saw the market plunge more than 2,300 points.

Major regional markets were still down on fears that the Covid-19 pandemic will push the world economy into a recession.

During initial trading, the Hang Seng Index dropped almost 400 points taking its cue from another rout on Wall Street overnight.

The local market later bounced back into positive territory and traded more than 300 points higher.

The rebound followed news that the Trump administration plans strong support for airlines stricken by the Covid 19 pandemic and is pushing the Senate to enact a massive stimulus package to alleviate losses for businesses and individuals.

The Hang Seng Index ended the day 200 points or 0.8 percent higher at 23,263.

Clothing manufacturer Shenzhou International surged more than 5 percent while China Mengniu Dairy and Techtronic Industries each rallied more than 3 percent.

AIA and HSBC each gained more than 2 percent.

Cathay Pacific dropped 2 percent to HK$8.88 after the carrier sold six aircraft for cash and warned that February alone would see a loss of more than HK$2 billion.

The Shanghai Composite index closed 0.3 percent lower, falling for a fifth trading day and hitting its lowest level since early last month, and the blue-chip CSI 300 index lost half a percent.

Across the straits, the market in Taiwan shed almost 3 percent. South Korea fell 2 and a half percent and Singapore lost 1.3 percent. But the Nikkei Index in Japan managed to close slightly higher after a volatile session.