HSI Joins Asian Rally As US Deal Lifts Market

Hong Kong stocks rallied along with the rest of Asia on Wednesday after US lawmakers agreed a massive stimulus package to support the world's number one economy as the coronavirus spreads.

The Hang Seng Index jumped 3.8 percent, to close at 23,527.

On the mainland, the Shanghai Composite Index rose 2.2 percent, to 2,781and the Shenzhen Composite Index climbed 2.9 percent, to 1,714.

The record gains overnight in New York spread into Asia, which rallied for a second straight day, with extra impetus later in the day coming from the news that White House and the Congress reached a deal on the rescue package.

Tokyo ended 89 percent higher, with investors there also relieved that the 2020 Olympics had been postponed rather than cancelled.

Singapore, Sydney and Manila rallied more than 5 percent and Seoul piled on more than 4 percent. Taipei added almost 4 percent, while Mumbai, Bangkok and Wellington were also well up. 

"The Senate's approval of the US$2 trillion package should provide a positive lift to investors' mood in the near term, complementing the US Federal Reserve’s aggressive action in the past four weeks," said Tai Hui at JP Morgan Asset Management.

"This is particularly important given the aggressive fiscal stimulus from European and Asian governments in the past two weeks. The US government needs to be seen as not just counting on the Fed to do all the heavy lifting." (AFP)