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Hong Kong Stocks surge on positive vaccine news

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Capital Market
Last Updated : Jul 21 2020 | 4:50 PM IST
The Hong Kong stock market finished higher on Tuesday, 21 July 2020, in line with a global advance, as news of promising COVID-19 vaccine studies and progress by European Union leaders in reaching a deal on a massive stimulus plan lifted risk sentiments.

At closing bell, the benchmark Hang Seng Index surged 2.31%, or 577.67 points, to 25,635.66. The Hang Seng China Enterprises Index added 1.46%, or 150.10 points, to 10,445.42.

Hong Kong equities kicked off the trading week on a positive note as vaccine hopes supported optimism. Pfizer and BioNTech reported early positive data on a joint coronavirus vaccine candidate. Another candidate from Oxford University and AstraZeneca also showed a positive immune response in an early trial. A team of scientists at Oxford University said their experimental coronavirus vaccine has been shown in an early trial to induce an immune response. The positive results of recent tests in the United States and Britain provided something for the market to look forward to, to help an economic recovery.

The coronavirus pandemic, which was first reported in China late last year, has infected more than 14.6 million people and killed over 608,000.

European leaders reached a breakthrough agreement over new fiscal stimulus, following marathon talks in Brussels over four days. The European Union's executive arm, the European Commission, will tap into financial markets to raise 750 billion euros ($857 billion), which would be distributed among countries and sectors most affected by the pandemic. The funds would be disbursed in the form of grants and loans.

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First Published: Jul 21 2020 | 4:19 PM IST

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