HSI Ends A Bruising Week With A 5 Percent Jump

Hong Kong stocks ended another bruising week with a much-needed rally on Friday, tracking big gains across Asia as investors welcomed massive stimulus and financial support from governments and central banks to fight the coronavirus impact.

The Hang Seng Index jumped 5.1 percent, or 1,095 points, to 22,805.

On the mainland, the Shanghai Composite Index rose 1.6 percent to 2,745 while the Shenzhen Composite Index gained 1.3 percent, to 1,704.

Mumbai and Kuala Lumpur all surged more than 5 percent, Seoul and Mumbai piled on more than 7 percent, while Taipei rallied more than 6 percent.

Manila rose 3.4 percent, while Singapore and Jakarta put on more than 1 percent, with Wellington 1 percent higher and Sydney up 0.7 percent. Tokyo was closed for a holiday.

In early trade, London and Paris both climbed more than 5 percent while Frankfurt was up more than six percent.

"For now... the artillery barrage from the world's central banks and government treasuries seems to have stopped the rot sweeping the global economy," said Onda's Jeffrey Halley.

But, while healthy, the advances come at the end of another tumultuous week for equities and there are warnings of further troubles down the line.

Many analysts expect markets to remain highly volatile and under pressure until health authorities get a better grasp of the scale of the outbreak in the United States and Europe and how long it will curtail activity.

"Despite the positive signs, credit markets continue to be under pressure," said Gorilla Trades strategist Ken Berman.

"High-yield bonds declined again, as the 10-year Treasury yield fell back to one percent, meaning that the 'flight-to-quality' continues. The immediate liquidity issues eased thanks to the central banks' steps, but credit markets will remain at the centre of attention, due to the systemic risks."

The US dollar was down against most other currencies after soaring over the past week owing to massive demand for the unit from dealers cashing out of investments.

The pound was up almost 3 percent, though it was still sitting around 35-year lows after cratering on Thursday, while the yen and euro also enjoyed strong buying.

The pound edged back in the local market and was fetching HK$9.15 in evening trade. (AFP)