Hong Kong Market rises on drop in new coronavirus cases

Headline indices of the Hong Kong stock market finished session up on Tuesday, 07 April 2020, as risk sentiment was boosted by continuing optimism that the deadly coronavirus epidemic may be waning in some key epicenters and on reports of overseas capital flooding into Chinese mainland markets. At closing bell, the benchmark Hang Seng Index advanced 2.12%, or 504.17 points, to 24,253.29. The Hang Seng China Enterprises Index grew 2.02%, or 194.61 points, to 9,846.92.

The mostly upbeat tone in markets comes amid more signs that the coronavirus crisis may be easing in some areas. Italy, France, Germany and Spain reported lower numbers of new cases. In New York, Governor Andrew Cuomo said deaths were showing indications of hitting a plateau. U.K. deaths slowed for a second day, even as they passed the grim milestone of 5,000.

 

Mainland China reported on Tuesday a drop in cases of the new coronavirus after closing its borders to virtually all foreigners to curb imported infections, while the central city of Wuhan, the epicentre of the outbreak, did not record any virus-related deaths for the first time since the outbreak began.

Overseas capital poured into the Chinese mainland on Tuesday, with the net influx into mainland markets exceeding 12.67 billion yuan via Stock Connect schemes linking Shanghai and Shenzhen with Hong Kong.

Meanwhile, sentiment was boosted by expectations OPEC and other top producers will reach a deal this week to reduce production, after a Saudi-Russia price war began right when the virus was already hammering demand.

Macau casinos, Chinese airlines and sports retailers were among outperformers. Meanwhile, HSBC advanced 3.1%, in its second day of gains. It tumbled three straight sessions last week after announcing it was cancelling its dividends.

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