HONG KONG, March 10 — Hong Kong and Shanghai shares jumped today following the previous day’s rout, with energy firms tracking a bounce in oil prices and firms linked to Hubei, the centre of the coronavirus, rallying after Xi Jinping visited the province.
Hong Kong’s Hang Seng Index climbed 1.41 per cent, or 352.05 points, to 25,392.51.
The benchmark Shanghai Composite Index added 1.82 per cent, or 53.47 points, to 2,996.76, while the Shenzhen Composite Index, which tracks stocks on China’s second exchange, jumped 2.42 per cent, or 44.68 points, to 1,887.34.
The gains were in line with a slight recovery from the Black Monday sell-off that was sparked by fears over the global economic impact of the outbreak and a crash in oil prices sparked by a row between key producers Saudi Arabia and Russia.
In a sign that China’s leaders are growing confident they are getting a grip on the COVID-19 outbreak, state media said Xi had visited Wuhan, the capital of Hubei province.
The president dropped in as unprecedented quarantine measures that have sealed off the city and the rest of Hubei since late January appear to have paid off, with new infections dropping dramatically in recent days.
News of the trip lit a rocket under several stocks linked to the province on hopes economic activity could soon pick up.
Hubei Guochuang Hi-tech Material Co. closed up the maximum 10 per cent and Wuhan Department Store Group surged 7.69 per cent.
Wuhan Sanzhen Industry Holding Co. and Langold Real Estate Co. also jumped by the maximum, while Sanan Optoelectronics Co. rallied 9.23 per cent. — AFP
