Hong Kong Stocks Start The Week With A Slide

Hong Kong stocks closed on a negative note on Monday as investors fret over China-US tensions and a jump in new virus infections that have caused some countries to reimpose lockdowns.

The Hang Seng Index fell 0.6 percent, to 24,458.

On the mainland, the Shanghai Composite Index added 1.8 percent, to 3,367 while the Shenzhen Composite Index jumped 2.6 percent, to 2,315 following a forecast-beating reading on factory activity from Caixin, days after a strong official report showed improvement in the manufacturing sector.

Japan's Nikkei 225 rose more than 2 percent as investors picked up cheap stocks following a steep drop last week, while there was also some cheer in data showing the country's economy contracted less than first thought in January-March.

Seoul edged up slightly. Singapore, Mumbai and Taipei were each off more than 1 percent.

Manila tanked more than 3 percent after the government said it would shut down the capital and nearby provinces for 15 days after a surge in cases, while Jakarta was off almost 3 percent.

There were also losses in Sydney, Bangkok and Wellington.

The new wave of coronavirus infections in many countries has fanned fears that a nascent economic recovery will be knocked off track.

"Covid-19 either remains rampant or is making worrying localised comebacks across the world," said Jeffrey Halley at Oanda.

"Although not priced into financial markets yet, it remains the critical risk factor to global recovery. Particularly if key economies that had previously controlled Covid-19 are forced back into large-scale lockdowns again," he said. (AFP)