HSI Edges Up As Wall Street Rally Boosts Asia

Hong Kong rose in morning trade on Tuesday following a surge on Wall Street as investors cheered signs that the spread of coronavirus is easing in some hotspots.

The Hang Seng Index added 0.3 percent, to 23,815 by the break.

On the mainland, the Shanghai Composite Index rose 1.74 percent, to 2,812, while the Shenzhen Composite Index climbed 2.7 percent, to 1,735.

Tokyo stocks ended the morning more than 1 percent higher.

Seoul, Taipei, Singapore, Manila and Wellington were also more than 1 percent higher, though Sydney and Jakarta fell slightly.

"You can't say that we've definitely turned the corner for certain but it does appear as though that is a good sign," Mark Heppenstall, at Penn Mutual Asset Management, said.

Adding to the positive vibe were further measures to support economies around the world, including a trillion-dollar package in Japan and central bank moves in China.

But while the mood is a little better on trading floors, analysts remained cautious.

"Still, the market will need to come up for air as for the real economy to recover the pace of play will be dictated more by (governments') willingness to relax social distancing measure, and the Covid-19 curve would probably need to flatten much more," said AxiCorp's Stephen Innes.

The gains in equities were matched by an uptick in oil prices, which were also supported by hopes Opec and other major producers led by Russia will reach a supply deal in talks on Thursday.

Prices fell to 18-year lows last week owing to a price war between Saudi Arabia and Russia, which have ramped up output.

On currency markets the pound stabilised following Monday's sell-off as it emerged that Johnson's condition had worsened after he contracted the virus late last month and was in intensive care. (AFP)

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