Hong Kong, Shanghai rise despite Wall Street rout - RTHK
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Hong Kong, Shanghai rise despite Wall Street rout

2020-09-11 HKT 17:52
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  • Despite strong finish by some markets, an analyst says the political bickering in Washington can put the economic recoveries in danger. Image: Shutterstock
    Despite strong finish by some markets, an analyst says the political bickering in Washington can put the economic recoveries in danger. Image: Shutterstock
Hong Kong shares rallied on Friday as investors brushed off another sharp drop on Wall Street to go bargain-buying following recent losses.

The Hang Seng Index climbed 0.8 percent, to 24,503.

On the mainland, the Shanghai Composite Index rose 0.8 percent, to close at 3,260 while the Shenzhen Composite Index jumped 1.6 percent, to 2,164.

Despite the US sell-off overnight, Asian investors pushed some local markets higher, with Tokyo, Shanghai, Mumbai and Seoul all up.

Manila put on 1 percent and Jakarta surged more than 2 percent a day after losing 5 percent on news of fresh containment measures in the city.

But Sydney, Taipei, Singapore, Wellington and Bangkok fell.

The political bickering in Washington over a second round of much needed help for Americans continued to cast a shadow on the markets.

Capitol Hill has been bickering over the deal for months, even after emergency cash handouts to the most needy ran out last month, putting millions in financial crisis.

Stephen Innes at AxiCorp pointed out that with US consumers – the crucial driver of the world's top economy – unable to spend, the recovery was in danger of coming off the rails.

"With services making up around two-thirds of overall spending, the recovery in this part of the economy is crucial if the US economy hopes to strongly finish the year," he said.

"With 28 million people needing this check to put food on their table, the fall in consumer spending is leaking into every part of the economy, be it staples, gasoline, or evictions, it's starting to show up in the demand picture.

"Forget about high-tech and US$2,000 mobile phones; this is about families going hungry." (AFP)