Hong Kong Stocks Extend Rally, Pound Stays Steady

Hong Kong stocks rose on Wednesday, in line with a regional advance and extending the previous day's 2 percent rally, with attention turning to the upcoming earnings season.

The Hang Seng Index added 0.3 percent, to end at 26,902.

On the mainland, the Shanghai Composite Index was barely moved, and closed at 2,570, while the Shenzhen Composite Index dipped 0.1 percent, to 1,321.

Other Asian equity markets mostly rose fuelled by Beijing's plans to cut taxes in a bid to support the stuttering economy.

However, traders are growing increasingly worried about the lack of movement in the US over the government shutdown, which is now in its fourth week, with both sides digging their heels in.

Tokyo ended off 0.6 percent. Sydney and Seoul each rose 0.4 percent, while Singapore added 0.3 percent and Wellington put on 0.7 percent with Mumbai 0.2 percent higher.

The pound held its ground after the record defeat of British Prime Minister Theresa May's Brexit plan, as investors consider the next developments in the long-running saga.

Sterling had tanked to a near two-year low soon after the government's proposal on leaving the European Union was soundly beaten on Tuesday evening, but it soon bounced back as traders bet there would not be a "no-deal" exit.

"Momentum is shifting away from the harder Brexit route and towards a number of options ranging from postponement and second referendum. That is pound supportive," said Gavin Friend at National Australia Bank.

But he added: "I don't see the pound rallying much until markets are sure the [ruling] Conservatives have seen off the confidence motion." (AFP)