Hong Kong’s benchmark stock index climbed as much as 2 per cent on Monday, extending a week-long rally and putting it on course to become the best-performing major index globally in April.
After a weak start to the year, the Hang Seng index entered a technical bull market during the day on Monday, touching a level 20 per cent above its January low, with an influx from international funds improving liquidity. The index closed 16 per cent above its January low and up more than 7 per cent this month.
Sentiment has shifted on Chinese equities, with foreign investors starting to chase lower-valued, high-dividend Hong Kong-listed shares. They have been shifting funds away from other Asia-Pacific markets such as Japan or India, where currencies are under pressure from a stronger dollar.