Hang Seng Index, China stocks advance as Moderna launches large-scale vaccine trial in US in hunt to beat Covid-19
- Tencent soars, ousting Facebook as the world’s most valuable social media network
- New Hang Seng Tech Index shoots up 3.5 per cent
Hong Kong stocks tied to the new tech index soared on Tuesday as risk-on sentiment returned, catapulting Tencent above Facebook to become the world’s seventh-most valuable company.
The new Hang Seng Tech Index of 30 top technology stocks soared 3.5 per cent as investors piled in, gripped by fear of missing out.
“The US and China conflict didn’t further escalate after closing one of each other’s consulates. Gold dropped from historical peak. Major tech stocks like Tesla [in the US overnight] zoomed and boosted sentiment,” said Alan Li, portfolio manager at Atta Capital. “Risk is on.”
In addition, American pharmaceutical manufacturer Moderna’s launch of a late-stage vaccine trial added to confidence, despite infection hotbeds in the US, Hong Kong, China and elsewhere.
The Hang Seng Index closed up 0.7 per cent to 24,772.76, snapping a two-session losing streak and last week’s big reversals after the US and China ratcheted up tensions by ordering the other to close one consulate. Still, the benchmark closed below the important 25,000 level.
