HSI Up, Mainland Markets Soar After Holidays

Hong Kong stocks went into the break slightly higher on Friday following a positive lead from Wall Street, lifted by lingering hopes for a news US stimulus package.

The Hang Seng Index added 0.09 percent, or 22.91 points, to 24,216.26.

On the mainland, the Shanghai Composite Index rallied 1.7 percent, to 3,272 while the Shenzhen Composite Index climbed 2.9 percent, to 2,210.

Tokyo, Singapore and Manila were slightly lower, while Sydney and Jakarta were barely moved. Wellington was slightly higher.

Investors are growing increasingly confident that Joe Biden will win the White House, with polls giving him big enough leads in battleground states that could prevent US President Donald Trump from challenging the result – a situation that would fan uncertainty.

And with Democrats possibly winning both houses of Congress, bets are being put on a much bigger stimulus than the one being discussed presently.

"Investors are revelling on the blue wave rally bus where the first order of the day... will be to open up the stimulus taps, and stocks are rallying in kind," said Axi's Stephen Innes, referring to the Democratic party's colours.

National Australia Bank's Rodrigo Catril added that the growing probability of a Biden win is settling markets, who "don't like uncertainty".

"It seems investors are embracing the prospect of a huge Biden fiscal spending plan with concerns over higher taxes and regulation likely to be a 2021 story," he said. (AFP)

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