Hong Kong Stocks Miss Key Level as Virus Worry Limits Gains
Hong Kong Stocks Test Key Level in Bid to Erase Slide From Virus
(Bloomberg) -- Hong Kong stocks closed just below a key technical level on Tuesday, a sign investors are still assessing the fallout of a deadly disease outbreak.
The Hang Seng Index rose 1.3% Tuesday at the close, ending the day at 27,583.88, less than three points shy of its 50-day moving average. The gauge also briefly rose above its 50-day average on Feb. 6 before closing lower. The benchmark rallied 17% after surmounting the technical level early last year.
Hong Kong shares rose Tuesday after those in the U.S. hit a new record. The city’s equities are now only another good day away from recouping losses suffered when investors returned from the break to news the coronavirus outbreak had gotten much worse. The index lost 5.9% in three sessions after the holiday, but is only 1.3% away from erasing the drop after China took steps to support its markets.
Tencent Holdings Ltd., the biggest stock in the index by weighting, has been boosting the benchmark. The internet giant has climbed 9.7% this month to its highest since June 2018, with Bloomberg Intelligence analysts including Vey-Sern Ling saying people staying at home are downloading more of its games. Tencent added 2.1% on Tuesday.
The Hang Seng China Enterprises Index climbed 1.5% to 10,808.52, 41 points short of its 50-day moving average.
To contact the reporter on this story: Jeanny Yu in Hong Kong at jyu107@bloomberg.net
To contact the editors responsible for this story: Sofia Horta e Costa at shortaecosta@bloomberg.net, Philip Glamann, Kevin Kingsbury
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