Hong Kong Stocks Climb on Report Virus Cases in Single Digits

(Bloomberg) -- Shares of Hong Kong-based companies climbed, with a gauge reaching its highest in five months, after local media reported the number of new coronavirus cases fell to single digits for the first time since July.

The MSCI Hong Kong Index rose 2% as of 4:22 p.m. The city was expected to report nine new infections on Monday, the South China Morning Post reported during the day, citing a medical source. The government later confirmed that figure. Landlords and mall operators were among the biggest gainers, with Swire Pacific Ltd. rallying the most in seven weeks.

Hong Kong’s economy has been under severe pressure after the city’s worst coronavirus outbreak emerged in early July. Officials shut bars, gyms and cinemas, while banning eating at restaurants between 6 p.m. and 5 a.m. Masks are mandatory both indoors and outdoors in public, while public gatherings of more than two people are forbidden.

“Concern about the virus is easing,” said Banny Lam, the head of research at CEB International Investment Corp.

The 40-member gauge has climbed 26% from its low this year, despite the impact of the shutdown on the city’s businesses and uncertainty over U.S.-China tensions. Unemployment was at 6.1% in July, while the government this month revised its 2020 forecast for the economy to a record-low range of -6% to -8%.

The Hang Seng Index climbed 1.7% to its highest finish since July 21, led by Tencent Holdings Ltd. Senior U.S. officials have been contacting some companies after realizing that the impact of an all-out ban on the popular WeChat could be devastating for U.S. tech, retail, gaming, telecoms and other industries, people familiar with matter said.

©2020 Bloomberg L.P.