Hong Kong Stocks Gain As Asian Markets Rally

Hong Kong stocks rose further in the morning session on Friday, extending their rally into a sixth day as investors are buoyed by China-US trade hopes and dovish comments from the Federal Reserve over interest rates.

The Hang Seng Index added 0.2 percent, to 26,570 by the break.

On the mainland, the Shanghai Composite Index was up 0.1 percent, to 2,537, and the Shenzhen Composite Index was 0.1 percent higher, to 1,304.

Tokyo added 0.7 percent by the break.

Singapore rose 0.6 percent, Seoul added 0.4 percent and Taipei jumped 0.6 percent while there were also gains in Wellington and Jakarta, though Sydney was slightly lower.

Markets are now awaiting the next development in the China-US trade spat after three days of talks this week that both sides indicated had been productive.

The yuan is one of the main beneficiaries of the progress in trade talks and softer Fed outlook, with the unit sitting at a more than five-month high against the US dollar, despite a string of weak data pointing to a growth slowdown in the world's number-two economy.

However, observers were sceptical about how long it will maintain its strength.

"The yuan can hold up fine" until the Fed hikes rates again, trade tensions resume and Beijing ramps up its stimulus measures, Michael Every, head of Asia financial markets research at Rabobank in Hong Kong, said.

"It's a 'when' and not an 'if' for when it reverses direction again and we test new lows".

Other regional units were mixed Friday but were mostly holding up after a week of gains. (AFP)

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