HSI loses momentum to close slightly higher

Optimism that a global economic recovery will pick up pace and US stimulus hopes drove risk appetite to lift markets in the region on Monday, but shares in Hong Kong narrowed gains to finish up 0.1 percent.

The Hang Seng Index rose as much as 417 points during early trade, but the rally lost steam in the afternoon. It closed just 30 points higher at 29,319, on turnover of HK$185.8 billion.

Galaxy Entertainment soared to a two-year high of HK$71.15 during trading as Macau unveiled the details of its vaccination programme. The casino operator later gave back some of its gains to close up 2.9 percent at HK$68.60.

Hong Kong Exchanges and Clearing put on 0.3 percent, after the bourse operator announced that it acquired a minority stake in the newly-formed Guangzhou Futures Exchange in a 210 million yuan deal, the first time Beijing allowed a non-mainland investor to invest in a domestic exchange.

But Xiaomi lost 0.2 percent despite its founder Lei Jun saying that the smartphone maker will relaunch its tablet line.

Alibaba also headed south and was down 0.6 percent.

Across the border, the Shanghai Composite Index added one percent, while the blue-chip CSI300 index advanced 1.5 percent. The Shenzhen Composite index edged up 1.2 percent.

Elsewhere in the region, Japan’s Nikkei jumped 2.1 percent to hit a fresh 30-year high, boosted by strong corporate earnings. But the Kospi in South Korea was dragged by auto shares and edged down almost one percent. Singapore was 0.8 percent higher. Australia gained 0.6 percent.

Meanwhile, Brent crude topped US$60 a barrel as oil prices rose to their highest in just over a year, fuelled by supply cuts and US stimulus.