Hong Kong Stocks gain on upbeat China data

The Hong Kong stock market finished session higher on Monday, 16 November 2020, as risk sentiments bolstered by tracking a Wall Street gains last Friday, and upbeat Chinese data pointed to a continued recovery in the world's second-largest economy. Meanwhile, progress in developing a COVID-19 vaccine also boosted investor sentiments.

At closing bell, the benchmark Hang Seng Index added 0.86%, or 224.81 points, to 26,381.67. The Hang Seng China Enterprises Index grew 0.32%, or 33.67 points, to 10,578.94.

China industrial production a was up 6.9% on year in October, the National Bureau of Statistics said on Monday, unchanged from the September reading. The bureau also said that fixed asset investment rose 1.8% on year, up from 0.8% in the previous month. Retail sales gained 4.3% on year, up from 3.3% a month earlier. The unemployment rate came in at 5.3%, down from 5.4% in September. Finally, house prices climbed an annual 4.3% in October, easing from 4.7% a month earlier.

 

China and 14 Asia-Pacific nations signed a major trade deal on Sunday a move which aims to gradually reduce tariffs across many areas. The Regional Comprehensive Economic Partnership is now the world's largest trade bloc, a deal which excludes the U.S. It marks the first time that East Asian powers China, Japan and South Korea are in a single trade agreement.

Vaccine optimism outshone worries about rising coronavirus cases globally, with news from Johnson & Johnson giving markets a further boost. The U.S. drugmaker launched a late-stage trial of its vaccine in Britain on Monday, shortly after promising developments from Pfizer and Moderna Inc about work on their respective drug studies.

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