Hong Kong Shares Push Rally Into Break

Hong Kong shares ended the morning with fresh gains, extending a rally into a seventh straight day, on growing optimism that China and the US will agree a trade deal.

The Hang Seng Index rose 0.86 percent, or 254 points, to 29,879 by the break.

Markets across Asia rallied as a report in the Financial Times said China and the US were closing in on a deal to end their long-running trade row.

Expectations that the world's top two economies will eventually sign a deal has been a key driver of a global equities rally this year and the FT article adds to the general sense of hope.

It comes after better-than-expected factory data out of China and the US that eased worries about growth in the global economy, while a dovish turn from central banks has also provided support.

"Recent positives such as the US Federal Reserve pausing their interest rate increases, incremental signs of progress on China-US trade negotiations and a dovish bias from China's (central bank) to support growth have given investors a sunnier attitude about risk assets," Tai Hui, chief market strategist for Asia Pacific at JP Morgan Asset Management, said.

In early trade, Shanghai added 0.3 percent and Tokyo went into the break 0.8 percent higher. Sydney and Singapore each gained 0.7 percent, while Seoul rose 0.5 percent. Taipei and Manila were each slightly higher. (AFP)