Tax-Waiver Plan Pushes Hong Kong, Asian Stocks Up – Asia Market Wrap

Shares in Asia gained Friday after a positive day on Wall Street, which included jobs statistics that backed the case for US interest rate reduction.

The MSCI Asia Pacific Index increased 0.7% as Hong Kong’s benchmark index touched its highest level since September, while shares in Japan, South Korea, and Australia also advanced. US futures rose somewhat as the S&P 500 index finished less than 1% off its all-time high on Thursday.

The Hang Seng rose after authorities said that they were contemplating a plan to exclude private investors from paying taxes on income earned from Hong Kong equities purchased through Stock Connect. Onshore Chinese equities dipped, however, as investors reviewed a story claiming that US President Joe Biden’s administration is set to announce a broad decision on China tariffs as early as next week.