Hong Kong Stocks Rise For Third Day

Hong Kong shares rallied for a third straight day on Wednesday as the easing of lockdowns around the world overshadowed worries about China-US tensions.

The Hang Seng Index climbed 1.4 percent, or 329 points, to 24,325.

The benchmark Shanghai Composite Index rose 0.1 percent to 2,923, while the Shenzhen Composite Index on China's second exchange was flat, inching up 0.7 points to 1,847.

Tokyo closed more than one percent higher, while Sydney put on 1.8 percent after data showed the Australian economy contracted at a slower rate than feared in the first quarter – though it is still on course for its first recession in nearly 30 years.

Seoul surged 2.9 percent as South Korea's government unveiled a supplementary budget worth US$29 billion, while Singapore was also up more than two percent.

Mumbai, Taipei and Jakarta were also more than one percent higher, while Wellington climbed 0.8 percent and Manila soared 3.7 percent.

The upbeat mood – and hopes for an extension to a massive output cut agreement – also helped oil markets continue their rally, with Brent breaking the US$40 mark for the first time in three months.

While deaths and infections surge in Latin America, governments in Europe and Asia have become confident enough to lift containment measures that have likely sunk the world economy into recession and destroyed tens of millions of jobs.

Cafes, bars, pools, beaches and schools are cautiously reopening, fanning hopes the second half of the year will see a sharp economic rebound, which – combined with trillions of dollars in stimulus and central bank support – have fed an equity rally.

"If I look at the markets, I see a V-shaped recovery," Mark Mobius, co-founder of Mobius Capital Partners, told Bloomberg TV. "That's what the markets are telling us." (AFP)