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Hong Kong Market extends gains on US infrastructure deal

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Capital Market
Last Updated : Jun 25 2021 | 6:50 PM IST
Hong Kong stock market finished higher for third session in row on Friday, 25 June 2021, as risk sentiments buoyed by tracking rally on Wall Street overnight that came after U.S. President Joe Biden announced a bipartisan deal on infrastructure spending.

The bipartisan deal is expected to move through Congress alongside a separate bill that would spend trillions more on what Biden called human infrastructure.

At closing bell, the benchmark Hang Seng Index advanced 1.4%, or 405.76 points, to 29,288.22. The Hang Seng China Enterprises Index added 1.88%, or 201.14 points, to 10,878.45.

The sub-index of the Hang Seng tracking the commerce & industry sector added 2.14%, the finance sector added 0.75%, and the properties sector added 0.18%, while utilities sector fell 0.2%.

The breakthrough in infrastructure spending talks overnight has lifted sentiments, with spending plans historically being a positive for the markets. A recovery in the U.S. economy is a boon for the export-driven Asian region. Although the vaccine rollout in Asia has lagged behind most parts of U.S. and Europe, the region's economies are likely to benefit from an overseas recovery.

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First Published: Jun 25 2021 | 6:36 PM IST

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