Optimism spread through Asian markets in anticipation of strong fiscal stimulus for the US economy evaded Hong Kong on Thursday. While stock markets in both Shanghai and Seoul rose, Hong Kong ended Thursday trading just in the red.
Chinese stocks have taken a ride on a wave of optimism coming from the United States. Joe Biden not only introduced a giant stimulus package for the economy, but he seems to have won the support of Republican lawmakers. The Shanghai CSI300 index rose 1.6 percent and the overall index rose 1.1 percent. Technology titles were the most successful on the Shanghai Stock Exchange, with the ChiNext index firming 2.5 percent. Shares in transportation companies also rose, up three percent.
In a similar vein, Thursday’s trading also developed on the Stock Exchange in Seoul, South Korea. Its KOSPI composite index added 1.5 percent on Thursday after adding 0.7 percent on Wednesday. Foreign investors were net buyers when the stock market capital inflow reached more than $200 million.
Hong Kong, on the other hand, headed down. The Hang Seng index fell 0.12 percent as technology stocks lost 0.28, while the financial sector added 0.37 percent. Real estate titles, on the other hand, wrote off 0.34 percent.