HK, Mainland Stocks Gain Ahead Of Xi-Trump Summit

Hong Kong stocks went into the break on a positive note on Tuesday, extending the previous day's rally, as investors focus on a planned meeting on trade between Donald Trump and Xi Jinping this month.

The Hang Seng Index added 0.8 percent, to 27,789 by the break.

Across the border, the Shanghai Composite Index jumped 2 percent, to 2,907 and the Shenzhen Composite Index soared 2.9 percent, to 1,526.

Markets extended the previous day's gains in Asia on Tuesday, with investors turning their attention back to the China-US trade row and a planned meeting between the countries' leaders later this month.

Tokyo ended the morning 0.4 percent higher, Sydney climbed 1.3 percent and Singapore put on 0.5 percent while Seoul added 0.3 percent. Wellington was nearly one percent up, with Taipei and Manila both strengthening 0.4 percent.

Support is also coming from expectations the Federal Reserve will cut interest rates as soon as next month in response to a string of soft US economic data and concerns about the impact of the China stand-off.

"What continues to grease the wheels of US equity markets and the one constant that keeps the S&P (500) ticking is Federal Reserve free and cheap money, it's long been an established pattern," said Stephen Innes at Vanguard Markets. (AFP)

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