Hong Kong Stocks Extend Gains, US Dollar Slips

Hong Kong stocks climbed more than 1 percent on Thursday for a fourth straight gain after the Federal Reserve indicated it could cut interest rates, with speculation it will do so next month.

The Hang Seng Index jumped 1.2 percent, to 28,550.

The benchmark Shanghai Composite Index rallied 2.4 percent, to 2,987 while the Shenzhen Composite Index added almost 2 percent, to 1,556.

Tokyo ended 0.6 percent higher as traders shrugged off a stronger yen and Sydney was up 0.6 percent.

Singapore added 0.8 percent, while Taipei and Manila each gained 0.1 percent up, though Wellington and Jakarta were slightly lower.

The US dollar and Treasury yields fell after the Federal Reserve signalled interest rates ahead.

The news hit the greenback, which fell across the board on foreign exchanges with higher-yielding units boosted by a pick-up in risk sentiment.

There were also big gains for yuan, the Australian dollar, the Thai baht and Mexican peso. The South African rand was 1.8 percent higher, South Korea's won gained 1.2 percent and Canada's dollar rose 1.1 percent.

Focus now turns to the meeting between Trump and Xi on the sidelines of the G20 summit in Osaka next week, with optimism at its highest since last month after the US president's tweet about "a very good telephone conversation" with his Chinese counterpart. (AFP)