Hong Kong

Asia Pacific stocks were up on Thursday amid the Delta coronavirus variant concerns. Hong Kong’s Hang Seng index jumped 1.77% breaking its losing streak. Mainland Chinese stocks, the Shanghai Composite edged higher while the Shenzhen Component was at a standstill. Australia’s ASX 200 index advanced despite a decline in the NAB Business Confidence. Japanese markets were shut for a holiday ahead of the Tokyo Olympic Games.

Economic Concerns

Hong Kong’s benchmark Hang Seng index has been on a downward trend as a regulatory clampdown limped shares of China’s tech giants. The surging coronavirus cases heavily weighed on investor sentiment.

However, strong corporate earnings from Europe and the United States eased fears about the Covid-19 slowing down global economic recovery. Despite the vaccination rollouts, the variants seem to be increasing at an alarming rate.

Investors are worried that this would lead to the adoption of strict lockdown restrictions which would hamper economic recovery. However, with the Federal Reserve’s dovish monetary policy, most investors are optimistic about global shares.

All eyes have shifted to the US weekly initial jobless claims data. The weekly initial claims to be released later in the day are expected to fall to 350,000 from the previous 360,000.

Hang Seng Performers

Xinyi Solar Holdings was the best performer in the Hang Seng index. The engineering services company gained 5.03% in its stock earnings. The company’s share price had taken a nosedive as supply surpassed demand.

Longfor Group Holdings gained 4.73% recovering from its losses earlier in the week. Techtronic Industries was also among the top performers. The electronics company gained 4.38% in its stock prices. Galaxy Entertainment advanced 4.58%. PetroChina’s share price gained 3.73%.

Among the worst performers in the index include CSPC Pharma, ANTA Sports Products, AAC Technologies, and Shenzhou Int.

CSPC Pharma was in the red amid the surging cases of the Delta coronavirus variant. The pharmaceutical company lost 1.69% in its share price. Shenzhou International Group Holdings fell 1.12% while ANTA Sports Products took a 2.06% nosedive. AAC Technologies was down 1.10%.

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