HSI Rises As Asian Markets Start The Week Strongly

Hong Kong stocks finished the morning session more than 1 percent higher on Monday as traders returned from an extended weekend break with hopes for a new US stimulus.

The Hang Seng Index rose 1.5 percent, to 23,801 by the break.

Mainland markets are closed for the public holiday.

Tokyo and Seoul also rose, while Sydney piled on more than 2 percent and Singapore put on 0.9 percent.

Taipei, Jakarta and Wellington were also in the green.

Observers said markets are largely pricing in a Joe Biden victory over Trump next month and a clean sweep for Democrats in House and Senate polls, despite expectations of higher taxes and regulations.

But Axi strategist Stephen Innes warned of more bumps in the road ahead: "With just weeks ahead of the US election, the only certainty is the uncertainty of what lies ahead."

"In the near term, the president's health situation may increase the likelihood of a contested result and all the adverse knock-on effects in times of uncertainty and heightened volatility after polling day," he added.

"In essence: As long as President Trump is still fighting Covid-19, everything else is of secondary importance. The health of the president will matter to both the polls and risk sentiment in general." (AFP)

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