Brief: Hang Seng Rises as Hong Kong Prepares Vaccination Drive

Summary:

The Hang Seng index is rising after Hong Kong passed a new vaccination law. In Asia, the Nikkei 225 and Shanghai index have also risen

The Hang Seng index is up by 0.60% today as investors react to the nee law allowing the use of new coronavirus vaccines. The new law will allow the city to authorize new vaccines since the ones it has procured earlier are still in the development stage. This means that the city will start administering the vaccine doses as early as next month.

A coronavirus vaccine is essential for the city’s recovery since it will lead to more business activity. It will also lead to more visitors who are essential to the city’s hospitality, tourism, and retail industry.

Also, a vaccine is essential for companies in the Hang Seng index. For example, it will help return real estate firms like Wharf Holdings and Link Real Estate back to growth.

The best-performing companies in the Hang Seng index are Xiaomi, Geely Automobile, Meituan Dianping, and ANTA Sports that are all up by more than 4%. On the other hand, the top laggards are firms like Sino Biopharmaceuticals, China Resources Land, China Unicom, and WuXi Biologics.

Elsewhere, in Japan, the Nikkei 225 index is up by 0.35% while the Shanghai composite is up by 0.55%. In Europe, futures tied to the FTSE 100 and the DAX index are in the red. Similarly, in the United States, the Dow Jones and S&P 500 futures are down by about 0.15%.

Hang Seng technical outlook

The Hang Seng index is trading at $26,258, which is slightly higher than this week’s low of $26,125. This price is also in the same range where it has been in the past few days. It is also between the 25-day EMA and 50-day EMA.while the RSI has continued to decline.

Therefore, the index will possibly remain in the current range throughout the week. The key support and resistance levels to watch will be $26,125 and $27,000.