Hong Kong, Shanghai Stocks Rally On Trump Comments

Hong Kong stocks finished on a positive note on Tuesday, tracking gains on Wall Street thanks to growing hopes that China and the US will hammer out the first phase of their trade pact by next month.

Donald Trump reinforced hopes that he and Xi Jinping will be able to put pen to paper on a mini pact, saying the first part of a wider commitment was almost complete.

The Hang Seng Index rose 0.2 percent, to 26,786.

On the mainland, the Shanghai Composite Index added 0.5 percent, to 2,954 and the Shenzhen Composite Index climbed over 1 percent, to 1,631.

Sydney gained 0.3 percent. Singapore put on 0.9 percent and Seoul rallied more than 1 percent. Wellington, Taipei, Manila and Mumbai were also higher.

The Tokyo market was closed for a holiday.

Sterling rallied Monday to US$1.3013 – its highest since May – but ticked back after House of Commons Speaker John Bercow refused the prime minister's request to put his bill to MPs.

On Tuesday it extended losses against the dollar and euro. In Hong Kong, the sterling slipped to HK$10.15.

"The prospect of an extension [to the October 31 deadline for leaving the EU] has continued to support the pound," said Michael Hewson, chief market analyst at CMC Markets UK.

"For now, this appears to be acting as a short-term top, with markets reluctant to drive the currency too much higher given that there could be many more political twists and turns before any deal gets across the line." (AFP)