Stocks Rise As Recovery Signs Offset New Lockdowns

Businesss Report

Hong Kong: Equities rose Thursday following a record lead from Wall Street, with investors cheered by hopes for a vaccine, more positive economic data and further lockdown easing in Europe.

The developments helped offset a worrying spike in infections in the United States, which has led to the reimposition of containment measures that could slow recovery in the world‘s top economy, and warnings of worse to come.

Hong Kong led the gains on reopening after a one-day break, despite concerns about a new security law imposed on the city by China that observers said was more draconian than feared and could impact its future as an attractive business hub.

And while there are worries about the issue causing further friction between Beijing and the West, markets remain positive for now.

The Hang Seng Index rose more than two percent, while Shanghai ended up 2.1 percent.

Sydney, MumbaiSeoulWellington and Bangkok were all up more than one percent, while Manila also chalked up more than two percent gains.

Taipei, Singapore and Jakarta were all in positive territory.

Tokyo ended up 0.1 percent with signs of a flare-up in new cases in the Japanese capital weighing on sentiment.

London and Paris opened 0.7 percent higher, while Frankfurt piled on one percent.

The gains came after another all-time high for the tech-heavy Nasdaq on Wall Street, with investors now awaiting the release of key US June jobs data later in the day for a better grip on the economy following May‘s surprise jump in employment.

There was some cheer as figures from payroll services firm ADP showed a 2.37 million increase in private jobs — slightly below forecasts — though it added that 3.06 million posts were created in May, a revision from its initial report of 2.76 million lost.

Adding to signs that the worst of the economic hit may have passed, US factory activity began growing again, while the rise in German retail sales was four times more than expected in May.