Hong Kong stocks rebound from April lows as Japan equities recover, global sell-off eases
The Hang Seng Index advanced 0.2 per cent to 16,724.61 as of 10.37am local time, after closing on Monday at the lowest level since April 22. The Tech Index gained 0.6 per cent while the Shanghai Composite Index added 0.2 per cent. Major gauges in the region also climbed, with South Korea’s Kospi rising 3 per cent and Australia’s S&P/ASX 200 adding 0.3 per cent.
Among top gainers in Hong Kong, Alibaba Group Holding added 2 per cent to HK$75.70 and rival JD.com rose 1.6 per cent to HK$98.45. Xinyi Solar jumped 4.6 per cent to HK$3.67 and drug maker Wuxi AppTec surged 3.9 per cent to HK$34.50.
Japan’s Nikkei 225 surged 10 per cent in recent trading, recouping most of the worst slump on record when it plunged 12 per cent in the previous day. The yen, which strengthened after a rate hike and triggered the crash, reversed a five-day rally against the US dollar. The VIX Index, Wall Street’s fear indicator, surged by the most since 1990 this week.
Concerns about a recession in the US, frothy valuations of artificial intelligence-driven tech stocks, and the Bank of Japan’s second-round of policy tightening spooked investors this week, wiping out more than US$6 trillion from stocks worldwide. Leading US equity benchmarks suffered their worst days in two years.
Two companies started trading on Tuesday. Zhongmiao Holdings, an insurance agency backed by home appliances giant Haier, slipped 0.3 per cent to HK$6.98 in Hong Kong, while Shenzhen Longtu Photomask, a maker of semiconductor products, surged 109 per cent to 38.70 yuan in Shanghai.
