HSI Up As Wall Street Surge Lifts Asian Markets

Hong Kong stocks ended the morning with more healthy gains Wednesday on optimism US lawmakers will soon pass a massive deal to support the world's biggest economy through the coronavirus crisis.

The Hang Seng Index rose 2.1 percent, to 23,143.

On the mainland, the Shanghai Composite Index rose 1.6 percent, to 2,765 while the Shenzhen Composite Index gained 2.1 percent, to 1,700.

Other Asian equities also following a blockbuster day in New York and Europe.

Tokyo went into the break 5.7 percent higher, while Sydney, Singapore and Wellington all gained more than 2 percent.

Seoul and Taipei each climbed more than 4 percent and Manila piled on more than 5 percent.

"Risk assets are enjoying a nice rebound as the market digests the Fed's broadening QE move into the corporate space while the prospect of a big US fiscal stimulus edges closer to fruition," said National Australia Bank's Rodrigo Catril.

Hopes for the US deal and the Fed's promise to ramp up its bond-buying, also sent the US dollar lower, a relief to investors as demand for the unit had seen it soar against peers, including a 35-year high against the pound.

The crude market – which has been hammered by the outbreak's impact on demand, as well as a price war between Saudi Arabia and Russia – also enjoyed a much-needed lift, though analysts cautioned the commodity still faced uncertainty.

However, observers warned that world markets were not out of the woods just yet as the number of infections and deaths continues to rise rapidly and the full economic impact is still unknown.

"In 'buy the rumour, sell the news' fashion, the stock market could easily take another sharp leg lower once the good news is out, and investors conclude that it won't be enough [yet] to address what's going on in the real economy," said AxiCorp's Stephen Innes. (AFP)

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