HSI Bounces Back, Shanghai Stock Index Soars

Hong Kong stocks finished on Monday morning's session with gains, reversing an early sell-off, though investors remain cautious as the city sees a spike in new virus infections.

The Hang Seng Index added 0.4 percent, to 25,177.

On the mainland, the Shanghai Composite Index soared 2.6 percent to 3,298, while the Shenzhen Composite Index rallied 1.8 percent to 2,197.

Most other Asian markets saw losses as new coronavirus outbreaks fuelled fears about the stuttering economic recovery.

Tokyo shed 0.4 percent, while Sydney and Seoul were each off 0.5 percent. Singapore dropped 0.8 percent and Wellington dipped 0.1 percent with Taipei and Manila also lower.

"Our base case remains for the economic recovery to continue, but for the deep V rebound evident in much recent data to give way to a slower bumpier recovery going forward.

"Shares are still vulnerable to a further correction or consolidation, with renewed lockdowns and the US presidential election being the main risks," said Shane Oliver, of AMP Capital Investors. (AFP)

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