HK stocks end firmer on stimulus hopes for virus-hit China


Reuters | Hong Kong | Updated: 19-02-2020 14:17 IST | Created: 19-02-2020 14:14 IST
HK stocks end firmer on stimulus hopes for virus-hit China
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Hong Kong stocks ended higher on Wednesday, following a slight decline in the number of new coronavirus cases in mainland China and amid hopes of more stimulus to shore up the world's second-largest economy.

At the close of trade, the Hang Seng index was up 0.5% at 27,655.81, while the Hang Seng China Enterprises index rose by nearly 1%.

The sub-index of the Hang Seng tracking energy shares ended 0.3% higher, the IT sector edged 0.5% higher, the financial sector gained 0.2% and the property sector was up 0.6%.

Investors welcomed the news that China will cut some pension contributions and insurance fees to help companies cope with the outbreak, while firms in Hubei were exempted from paying pensions, jobless and work-injury insurance until June.

Chinese policymakers have already implemented a raft of measures to support the economy amid the virus outbreak.

The number of new cases of coronavirus infection fell for a second straight day in mainland China on Wednesday, though the death toll edged past 2,000.

China's National Health Commission reported 1,749 new confirmed cases of coronavirus infections, the lowest daily rise since Jan. 29. In Hubei province - the epicenter of the outbreak - new infections fell to lowest since Feb. 11.

The top gainer in the Hang Seng was WH Group Ltd, which gained 3.7%, while the biggest loser was HSBC Holdings PLC , which declined 1.3%.

However, Shanghai stocks ended a three-day winning streak as worries persisted over the fast-spreading coronavirus epidemic, as the death toll in the mainland crossed 2,000.

Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.4%, while Japan's Nikkei index closed up 0.9%.

The yuan was flat at 6.9963 per U.S. dollar.

About 1.35 billion Hang Seng index shares were traded. The volume traded in the previous trading session was 1.59 billion.

At close, China's A-shares were trading at a premium of 23.98% over Hong Kong-listed H-shares.

 

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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