Local stocks lose ground despite regional gains

Asian markets scaled new heights on Thursday on optimism over the new US administration, but the Hong Kong market bucked the trend in reporting marginal losses.

Local stocks had been bullish during the morning session with the Hang Seng Index hitting 30,135 – its highest level in 21 months.

But stocks fell later in the day. The Hang Seng Index closed around 0.1 percent lower to 29,927, snapping a five-day winning streak.

Market turnover also dropped when compared to the previous two days, to HK$264 billion.

The benchmark index’s top performer was Sino Biopharmaceutical, which gained nearly four percent.

Smartphone maker Xiaomi was the biggest loser, dropping more than three percent.

Markets climbed across the border, in line with regional trends on hopes of greater stimulus from the new US President Joe Biden’s administration.

The blue-chip CSI-300 jumped over one and a half percent, while the Shanghai Composite Index added more than one percent.

Markets elsewhere in Asia took their cue from a solid overnight performance on Wall Street, following Biden’s inauguration.

The Nikkei in Japan earned 0.8 percent for its highest close in 30 years, while the Kospi in South Korea rose more than one percent to hit an all-time high.

Shares in Taiwan also surged, by more than two percent, for another record high and Australian shares finished at their highest in 11 months.

In commodity markets, oil prices slipped after industry data showed a surprise build-up in US crude stockpiles, stoking concerns of a global supply glut.