Hong Kong Stocks Rally

Hong Kong stocks started the month on a firm note on Thursday, led by tech players tracking overnight gains on Wall Street, as investors cheered the government spending plan in the United States and hoped for strong jobs data.

At the close of trade, the Hang Seng index was up 1.97% at 28,938.74 while the Hang Seng China Enterprises index rose 2.24% to 11,217.41.

Leading the gains, the Hang Seng tech index and the Hang Seng IT index jumped 4.7% and 6.1% each. Not to be outdone, Gaming giant Tencent ended up 7.2%.

U.S. President Joe Biden outlined a broad plan to re-make the world’s biggest economy including spending on roads, railways, broadband, clean energy, and semiconductor manufacture.

China’s factory activity in March expanded at the slowest pace in almost a year on softer overall domestic demand, but underlying economic conditions remained positive even as input and output inflationary pressures intensified for manufacturers.

The findings contrast with those in an official survey, which showed manufacturing activity grew at a stronger pace as large firms ramped up production after a brief lull during the Lunar New Year holidays.

Around the region, MSCI’s Asia ex-Japan stock index was firmer by 1.25%, while Japan’s Nikkei index closed up 0.72%. The yuan was quoted at 6.5711 per U.S. dollar at 0811 GMT, 0.29% weaker than the previous close of 6.5518.