Virus Surge Stymies HSI, Support Move Lifts Shanghai

Hong Kong stocks finished with a loss on Monday as investors fret over a spike in coronavirus cases in the city that has forced authorities to step up containment measures.

The Hang Seng Index eased 0.1 percent, to 25,057.

On the mainland, the Shanghai Composite Index rallied 3.1 percent, to 3,314, led by financial firms, after regulators moved to bolster the market by lifting equity investment cap for insurers and encouraging mergers and acquisitions among brokerages and mutual fund houses.

The Shenzhen Composite Index gained 2.7 percent, to 2,216.

Tokyo edged up 0.1 percent after reversing early losses, while there were also gains in Mumbai and Bangkok.

But Sydney and Jakarta slipped 0.5 percent, Singapore lost 0.4 percent and Wellington gave back 0.3 percent. Taipei and Seoul both lost 0.1 percent.

Investors are keeping an eye on Washington, hoping lawmakers will press ahead with fresh stimulus measures for the world's top economy, with unemployment benefit bonus payments due to expire on July 31.

However, there are disagreements over how much to pay and President Donald Trump is trying to include tax cuts. Failure to extend the scheme would have a catastrophic impact on poor families.

"Depending on how ugly or not the bipartisanship becomes, this story has the potential to move markets later in the week," said Jeffrey Halley at Oanda. (AFP)