Hong Kong Stocks End Flat, Pound Stays Strong

Hong Kong stocks finished flat on Monday after swinging in and out of positive territory as investors look ahead to a key week that includes China-US trade talks, another Brexit vote and a Federal Reserve policy meeting.

The Hang Seng Index inched up just over seven points to 27,576.

Russian aluminium giant Rusal jumped 9.4 percent in Hong Kong after the US Treasury Department lifted sanctions on it and two related companies after blacklisted billionaire Oleg Deripaska took action to sharply cut his stake in them.

On the mainland, the Shanghai Composite Index sank 0.2 percent, to 2,596, while the Shenzhen Composite Index slipped 0.4 percent, to 1,314.

Tokyo dropped 0.6 percent. Singapore skidded 0.1 percent, while Seoul was marginally lower and Mumbai dropped 0.9 percent.

However, Manila rose 0.3 percent, Taipei put on 0.4 percent and there were also gains in Wellington and Bangkok.

The pound dipped but was holding up against the US dollar ahead of Tuesday's vote on May's revised Brexit deal, with many believing that even if it is kicked out by MPs, Britain will still not leave the European Union without an agreement.

There is a growing sense that May will seek a delay in the country's leaving date to give her more time to reach a deal.

"The pound has made some decent gains over the past few weeks on the basis that a 'no deal' Brexit seems a much more distant prospect," Michael Hewson, chief market analyst at CMC Markets, said in a note.

"A lot of this still seems more like wishful thinking than anything else, given the parliamentary arithmetic, as well as the politics. Markets seem to have a lot more faith in politicians than many think they deserve." (AFP)