Hong Kong--Hong Kong shares motored Thursday, rising more than six percent over two days, as mainlanders pile into the market, but most other Asian equities retreated after minutes from the US Federal Reserve showed policymakers split on when to hike interest rates.
Wall Street provided a healthy platform for regional investors while the dollar ticked higher.
Hong Kong jumped 2.70 percent, or 707.53 points, to 26,944.39, although that is well short of the 6.7 percent surge seen in the opening exchanges -- the index ended 3.80 percent higher Wednesday.
But Shanghai lost 0.93 percent, or 37.28 points, to end at 3,957.53 on profit-taking.
Tokyo rose 0.75 percent, or 147.91 points, to 19,937.72 thanks to a weaker yen but Sydney lost 0.48 percent, or 28.53 points, to close at 5,932.20 and Seoul was marginally lower, dipping 0.39 points to 2,058.87.
Shares in Hong Kong surged for a second day as mainland investors capitalise on the Stock Connect scheme with Shanghai that allows them to trade a limited amount of shares in the southern Chinese city, and vice versa.
The programme was initially met with scant interest, but mainland authorities' decision last month to expand the number of fund-management firms allowed to buy in Hong Kong has seen activity surge and on Wednesday turnover hit a record HK$250.03 billion ($32 billion).
"The catalyst for the rally in Hong Kong was the allowance by the Chinese securities regulators to have Chinese mutual funds be able to invest in Hong Kong listed companies," Mark Matthews, Singapore-based head of Asia research at Bank Julius Baer & Co., told Bloomberg TV.
On Wednesday traders on both sides of the border for the first time used up their daily quota of deals allowed under the link-up.
Shanghai stocks have been rising for more than a year as retail investors bet -- often using borrowed money -- on authorities loosening monetary policy further to support the world's number two economy.
AFP
