Alibaba Up 3%, Nio Down 2%: Hang Seng Opens Higher As China Economic Optimism Outweighs COVID-19 Surge

Hong Kong stocks opened in the green on Monday, with the benchmark Hang Seng rising 0.5% in morning trade on the back of China’s top leaders commenting they will focus on boosting the economy next year. Alibaba shares rose over 2% in morning trade while Nio stock lost over 2%. Meituan shares rose over 4%.

Macro News: China’s top leaders stated they will focus on boosting the economy next year, pointing towards business-friendly policies and further support for the property market while possibly scaling back fiscal stimulus, reported Bloomberg.

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Shanghai's education bureau has asked most grades in primary, middle and high school to conduct classes online beginning Monday in the wake of worsening COVID-19 infections, reported Reuters.

Company News: Taiwan's government stated on Saturday it would fine Foxconn Technology Co Ltd FXCOF for an unauthorized investment in a Chinese chip-maker despite the Taiwanese firm saying it would be selling the stake, reported Reuters.

The CEOs of China's high-profile electric vehicle makers, XPeng and Li Auto, have tested positive for COVID-19, reported CnEVPost.

Top Gainers and Losers: Meituan and Alibaba Group Holding Limited are the top gainers among Hang Seng constituents, having risen 6% and 4%, respectively. CSPC Pharmaceutical Group Limited and Techtronic Industries Company Limited shares are the top losers, having shed over 2.5% and 1%, respectively.

Global News: U.S. futures traded in the green on Monday morning Asia session. The Dow Jones futures gained 0.13% while the Nasdaq futures rose 0.33%. The S&P 500 futures were trading higher by 0.23%.

Elsewhere in Asia-Pacific, Australia’s ASX 200 was trading lower by 0.08%. Japan’s Nikkei 225 traded 1.17% lower while China’s Shanghai Composite index lost 0.76%. South Korea’s Kospi shed 0.25%.

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