Hong Kong’s Hang Seng jumps 4% as Asian stocks rise

SINGAPORE – Shares in the Asia-Pacific region rose on Friday, as technology shares in the region jumped after big gains on Wall Street that saw the Nasdaq Composite rise 3%.

Hong Kong’s Hang Seng closed 4.01% higher at 21089.39, topping gains among the region’s major markets.

Chinese stocks also saw big gains, with the Shanghai Composite closing 2.41% higher at 3047.06 while the Shenzhen component rose 3.693% to around 11021.44.

The rally in Chinese markets came after Chinese state media reported on Friday details of a Politburo meeting where officials promised more political support to meet the country’s economic growth target for this year.

“The most important message is a change in policy priority. In the past few weeks, the top priority appears to be containing the Omicron outbreak. The goal now is to balance outbreak containment with economic growth. This suggests that the government may set ‘zero'” wrote Zhang Choi, chief economist At Pinpoint Asset Management, in a note: Tolerance policy to “allow for some flexibility”.

Mainland China has in recent weeks been grappling with the worst Covid outbreak since the initial shock of the epidemic in early 2020, with concerns surrounding the country’s economic outlook as authorities continue to stick to a strict “zero Covid” strategy.

It’s overall very constructive…a sea of ​​positive green performance today on the back of a very strong corporate earnings season coming out of the US market.

Audrey Goh

Chief Investment Strategist, Standard Chartered

Investors also watched moves in tech stocks in Asia Pacific after their counterparts on Wall Street rebounded overnight. The heavy Nasdaq Composite Index jumped 3.06% to 12871.53.

Chinese technology stocks jumped, with Tencent gaining 11.07% while Alibaba’s soaring 15.69%. Hang Seng Tech rose 9.96% to 4,471.75.

Shares of South Korean industry heavyweight Samsung Electronics rose 4.01% while chip maker SK Hynix rose 2.74%. Crafton shares jumped 4.78%.

The broader Kospi index in South Korea rose 1.03% to close at 2,695.05 while the S&P/ASX 200 in Australia rose 1.06% to end the trading day at 7,435.

Markets in Japan were closed Friday for a holiday. MSCI’s broadest index of Asia Pacific shares outside Japan rose 2.58%.

“I think overall it’s a very constructive thing…a sea of ​​positive green performance today on the back of a very strong batch of corporate earnings season coming out of the US market,” Audrey Goh, chief investment analyst at Standard Chartered, told CNBC. Street Signs Asia’ Friday.

Looking ahead, Goh referred to the upcoming meeting of the US Federal Open Market Committee where investors will be watching for evidence of interest rate expectations.

“Overall, as the weekend approaches, we will likely be more cautious as to how the Fed might indicate some path of rate hikes going forward,” she said.

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Currency and oil

The US dollar index, which measures the greenback against a basket of its peers, was at 102.955 after earlier seeing a high of 103.665.

The Japanese yen was trading at 129.91 against the dollar, stronger after a previous low of 130.95 against the dollar. The Australian dollar was at $0.7157, still far from the levels above $0.72 seen earlier this week.

Oil prices rose in Asian afternoon trading hours, with international benchmark Brent crude futures up 1.39% to $109.09 a barrel. US crude futures rose 1.05 percent to $106.47 a barrel.

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