Hong Kong Stocks gain on US stimulus cheer

Hong Kong stock market finished session higher on Tuesday, 29 December 2020, as risk appetite improved after President Donald Trump signing of long-awaited $900 billion economic aid package and a landmark Brexit trade deal between European Union and the U.K..

At closing bell, the benchmark Hang Seng Index advanced 0.96%, or 253.86 points, to 26,568.49. The Hang Seng China Enterprises Index grew 1.34%, or 137.69 points, to 10,449.17.

US President Donald Trump signed a $900 billion economic aid package on Monday, helping to staunch uncertainty as governments reimpose pandemic-fighting travel and business curbs that threaten to weigh on global economic activity. The package also includes $1.4 trillion to fund government agencies, averting a federal government shutdown that otherwise would have started Tuesday.

 

Adding to cheer, Britain clinched a narrow Brexit trade deal with the European Union on Thursday, limiting the scale of disruption from the divorce. European Union (EU) nations have unanimously approve the post-Brexit trade deal with the United Kingdom, a prerequisite for the agreement to come into operation on New Year's Day. Germany, which holds the EU presidency, said the decision came during a meeting of EU ambassadors to assess the Christmas Eve agreement.

The British Parliament is expected to vote in a special sitting of parliament to approve the deal on Wednesday while the EU will adopt fast-track procedures for provisional application. Representatives of member states of the EU have agreed on the provisional application of the trade and cooperation agreement with Britain starting from January 1, 2021, Sebastian Fischer, spokesperson of the Permanent Representatives Committee for the German Presidency of the EU Council, tweeted on Monday. The free trade deal is the biggest bilateral trade deal signed by either side, covering trade worth around 668 billion pounds (about $905.4 billion). British Prime Minister Boris Johnson has said the post-Brexit trade deal is a new starting point for Britain and the European Union (EU).

Shares of technology companies jumped on bargain hunting after heavy selloff yesterday amid concerns about China's clampdown on domestic monopolies. Alibaba Group Holding surged 5.7 per cent to HK$222 from near a six-month low while Tencent added 2.2 per cent to HK$530.50 and Meituan rose 5.2 per cent to HK$273.40. ZTE Corp surged by 7.8 per cent to HK$19.44.

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