Hong Kong stocks are closing in on a new record high

Oli Scarff / AFP / Getty Images

The Hang Seng index on the Hong Kong stock exchange cleared 28,000 in early trade this morning. The index last closed above 28,000 in May 2015.

This morning’s gain follow a 1.2% rise on Friday, after the index was closed for a typhoon on Thursday.

Investing.com

Despite the move higher, global e-commerce conglomerate Tencent Holdings, which is listed on the Hang Seng index, is down by 0.55% in early trade.

The Hang Seng index’s highest closing figure was 28,442.75 on April 28, 2015. It last closed above 28,000 on May 27 that year.

The latest push above that level is reflective of the strong performance in Asian emerging markets this year.

Foreign capital flowed into the region in the first half of this year, driven in large part by continued weakness in the US dollar.

Hong Kong stocks have continued to see strong demand, with this morning’s move above 28,000 taking the Hang Seng index almost 2,000 points higher than early July when it reached a two-year high.

While Asian emerging markets have seen strong demand, Australian stocks have languished and the local index opened lower this morning.

The ASX200 remains stuck within their recent trading range between 5,650 and 5,800, and a short time ago the index was close to a fall below 5,700 for the first time in two weeks.

Elsewhere in Asia, South Korea’s KOSPII index opened 0.4%. But mainland Chinese stocks on the Shanghai Composite Index are up by 0.66% in early trade.

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