Hong Kong Stocks Jump, Strong Yen Hits Nikkei

Hong Kong stocks climbed 2 percent on Wednesday, extending a rebound from last week's hammering but most other Asian markets were mixed as nervous investors await the release of key US inflation data fearing fresh volatility.

The Hang Seng Index rose 2.3 percent, to close at 30,515.

On the mainland, the Shanghai Composite Index added 0.5 percent, to 3,199 while the Shenzhen Composite Index gained 0.5 percent, to 1,739.

The Nikkei closed 0.4 percent down as exporters were hit by the yen, which briefly hit 106.85 to the US dollar, a level last seen since Donald Trump's election win in November 2016.

"Given the recent stock market slump, risk aversion has grown, which prompted safe-haven buying of the yen," said Shinichiro Kadota, senior fx strategist at Barclays Securities.

"The dollar's fall through the 108-yen mark and then 107-yen mark invited even more yen buying," he said, adding that investors were likely to "stick to yen buying unless their confidence recovers".

Seoul gained more than 1 percent. Singapore was flat, Sydney eased 0.3 percent, Wellington dropped 0.8 percent and Jakarta edged up 0.1 percent

On currency markets, the greenback edged up against the euro but was struggling to recover after falling almost 1 percent against the unit on Tuesday. It pared losses against the pound but was down against most high-yielding currencies including the Australian dollar, South Korean won and Indonesian rupiah. (AFP)