HSI Snaps Four-day Win Streak Over Profit-taking

Hong Kong shares closed on Thursday on a negative note as profit-takers moved in following four days of gains, though losses were tempered by hopes US lawmakers will eventually push through a stimulus.

The Hang Seng Index slipped 0.2 percent, or 49 points, to 24,193.

Mainland Chinese markets were closed for a public holiday.

Asian markets, meanwhile, mostly rose as investors tracked a Wall Street rally.

Tokyo rose 1 percent, while Sydney, Mumbai, Manila and Taipei eacah added more than 1 percent. Seoul, Bangkok and Jakarta were also up, while Singapore was flat.

Wellington jumped 1.8 percent after the New Zealand central bank indicated it could unveil fresh economy-boosting measures. The country's dollar sank 0.4 percent against the US dollar on the news.

Analysts said investors were increasingly confident Joe Biden and the Democratic Party will win the US presidency and both houses of Congress, paving the way for a huge new stimulus.

"The prospect of the Democrats sweeping all three levels of government continues to support stock markets in the run-up to the election day," said Axi strategist Stephen Innes.

This "would put the Democrats in a position to all but rubberstamp an energetic fiscal stimulus bill while lavishing the country with significant investment in health care, education, and infrastructure," he added.

"The only way traders will shift from this bias is if Trump recovers in the polls."

However, he added that while investors were happy to take the pain of higher taxes and more market regulation for big stimulus, there could be a post-election drop in stocks as they comprehend such policies. (AFP)