Hong Kong stocks end losing streak as Xiaomi hits record high, investors weigh US stimulus outlook
- Hang Seng Index ended a three-day losing streak with Xiaomi closing at a record high, while Covid-19 cases continued to rattle investors
- Trump signaled opposition to US$900 billion economic stimulus package approved by bipartisan lawmakers in a tweet
The Hang Seng Index added 0.9 per cent to 26,343.10 at the close on Wednesday. The gauge had lost 2.5 per cent over the past three trading days amid concerns about a resurgence in Covid-19 cases locally and in Europe. The Shanghai Composite Index advanced 0.8 per cent.
Markets across Asia-Pacific also reversed earlier declines, even as US President Donald Trump hinted that he might not sign the fresh US$900 billion rescue package passed by lawmakers, while demanding the Congress to amend the bipartisan legislation. European stocks continued to recoup the losses sparked by the discovery of a new highly infectious strain of Covid-19 in the UK early this week.
“Asia‘s first reaction appears to be that Trump is bluffing, or that even if Trump vetoes the fiscal stimulus, Congress will act quickly with the necessary votes,” said Jeffrey Halley, an analyst at Oanda. “For now, markets appear to be holding off pressing the sell button until the situation clarifies.”
Xiaomi climbed 7.6 per cent to HK$31.90 for its highest close since its listing in 2018, as investors turned increasingly upbeat about the sales of its high-end smartphones. Geely Automobile and Meituan were also among the biggest gainers, rising at least 3.9 per cent.
