Hong Kong, Shanghai Stocks Rise On Trade Talk News

Hong Kong shares ended on a positive note on Tuesday following the previous day's steep losses, with investors buoyed by hopes for progress in China-US trade talks.

The Hang Seng Index gained 0.3 percent, to 28,466.

On the mainland, the Shanghai Composite Index rose 0.5 percent, to 2,899 and the Shenzhen Composite Index jumped 0.9 percent, to 1,545.

Most other Asian markets rose, tracking gains on Wall Street with confidence given a boost by a positive earnings season.

Attention is now on the upcoming releases by tech titans including Amazon, Facebook and Google, with Boeing, Caterpillar, American Airlines and Coca-Cola also in line.

"Markets feel poised for some increased volatility," Nick Twidale, director and co-founder of financial technology platform X-Chainge, said in a commentary.

"Traders will be looking to see how much trade issues have affected the bottom line of some of the big players, although news the talks between the two trading superpowers could resume next week should support underlying sentiment," he added.

Tokyo ended one percent higher. Sydney added 0.5 percent, Singapore put on 0.3 percent and Seoul gained 0.4 percent. Wellington, Taipei and Jakarta were also in positive territory.

The US dollar was down against most higher-yielding, riskier units as dealers jockey for positions ahead of the Fed policy meeting.

The pound dropped ahead of the election of a new British prime minister later on Tuesday, with arch-Brexiter Boris Johnson widely expected to win, raising concerns he will push for an exit from the European Union without an economic plan in place.

"What does it mean for sterling and UK assets? Not a lot for the now as so much is priced in," said Neil Wilson, chief market analyst at Markets.com. "However we are yet to find out what all shakes out in terms of the regime shift."

"The content, tone and emphasis from Number 10 will be very different to what we had under [Theresa] May," he added. (AFP)