Hong Kong Stocks Gain Ahead Of Key Fed Meeting

Hong Kong shares climbed on Tuesday morning to extend the previous day's gains as investors await a key Federal Reserve meeting later this week.

The Hang Seng Index rose 0.7 percent, to 27,427 by the break.

On the mainland, the Shanghai Composite Index was up 0.1 percent, at 2,889 at noon after a volatile morning session while the Shenzhen Composite Index, gained 0.2 percent, to 1,505.

Most other Asian markets rose but the gains were limited with investors treading uneasily as they await the conclusion of a crucial Federal Reserve meeting this week.

Singapore gained 0.7 percent, Sydney rose 0.5 percent and Seoul put on 0.4 percent. Wellington, Taipei, Manila and Jakarta also climbed but Tokyo ended the morning 0.3 percent lower.

Investors are also gearing up for next week's high-stakes G20 summit, where President Xi Jinping and his US counterpart Donald Trump is pencilled in to meet on the sidelines to discuss their trade war.

Officials on both sides have played down the likelihood of a deal being struck in Osaka but experts point out that some sort of breakthrough is in the interests of Beijing and Washington as their economies stutter.

"The trade war is starting to ebb away at US data," said Oanda senior market analyst Edward Moya. "Uncertainty on the trade front remains high and markets will remain undecided until we see the events at the G20 summit in Japan unfold." (AFP)

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