Hong Kong, Shanghai Markets Rise, Pound Gains

Shares in Hong Kong ended Wednesday morning with fresh gains, boosted by lingering optimism over China-US trade talks.

The Hang Seng Index added 0.5 percent, to 28,910 by the break.

On the mainland, the Shanghai Composite Index gained 0.8 percent, to 2,963 while the Shenzhen Composite Index rose 0.6 percent, to 1,558.

Tokyo ending the morning 0.5 percent higher and Seoul climbing 0.3 percent. Sydney added 0.4 percent though Taipei and Wellington edged lower.

However, while equities are enjoying a broad-based advance, there are warnings against overconfidence.

"Investors will continue to trade from a positive standpoint, but anything that comes out that could possibly derail a China-US trade deal will probably lead to some strong profit-taking flows and a decent downside correction and increase in volatility," said Nick Twidale, chief operating officer at Rakuten Securities Australia.

Hopes that Britain will not leave the European Union without a divorce pact in place has also provided some support to markets and the pound in particular.

Sterling held its own in Asia a day after surging more than 1 percent on Prime Minister Theresa May's decision to let MPs vote on a three-month delay to the March 29 Brexit deadline if she is unable to ram through her own deal. (AFP)

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