Hong Kong Market gains on US stimulus deal

Headline indices of the Hong Kong stock market finished higher for second day in row on Wednesday, 25 March 2020, joining a global rally, as buying was boosted after reports U. S. lawmakers had reached an agreement on a $2 trillion stimulus package to rescue the economy from the new coronavirus. At closing bell, the benchmark Hang Seng Index advanced 3.81%, or 863.70 points, to 23,527.19. The Hang Seng China Enterprises Index added 3.76%, or 345.05 points, to 9,529.49.

The Hong Kong market shot higher from the outset after the Dow Jones Industrial Average marked its largest-ever point increase overnight on expectations of the agreement on the stimulus package.

The White House and Senate reached a deal on a gigantic $2 trillion coronavirus stimulus bill early Wednesday stateside. The massive stimulus is designed to be a lifeline to Americans and their employers until the coronavirus is brought under control and the country finds some semblance of normalcy.

Government stimulus measures and central banks’ monetary easing policies have helped lower concerns over the impact of the coronavirus on the global economy in recent trading.

Also helping sentiment, mainland China reported a drop in new confirmed coronavirus cases on Wednesday as imported infections fell and no locally transmitted infections were reported. The country appears to be getting back to work. More than one fifth of American companies in China are back to normal operations, a survey showed Wednesday.

Tencent Holdings rose 4%, while WH Group shot up 11.2% while Alibaba Group Holding, the e-commerce giant, gained 3%.

Food-related companies were among big winners. WH Group (288 HK) – the world’s largest pork producer – skyrocketed 11.2% to HK$7.3, while Want Want China (151 HK) – manufacturer of snacks and beverages like flavoured milk – shot up 7.6% to HK$5.5, its highest level since March 13.

Property stocks also extended notable gains, with Longfor Group (960 HK) rising 8.9% to HK$36.1, Country Garden (2007 HK) adding 5.4% to HK$8.9, China Resources Land (1109 HK) gaining 5.8% to HK$31.9 and China Overseas (688 HK) ending up 4.6% to HK$24.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, March 25 2020. 16:23 IST

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