Hong Kong Stocks Up, Yuan Jumps On Stability Call

Hong Kong stocks ended the morning in positive territory on Wednesday on hopes that China and the US will be able to thrash out a deal to resolve their trade dispute.

The Hang Seng Index rose 0.7 percent, to 28,415 by the break.

On the mainland, the Shanghai Composite Index gave up earlier gains and lost 0.3 percent, to 2,748, while the Shenzhen Composite Index lost 0.4 percent, to 1,438.

Seoul climbed more than 1 percent, Singapore put on 0.6 percent, Taipei added 0.9 percent and Wellington 0.3 percent. Manila piled on 1 percent but Sydney slipped 0.3 percent.

The upbeat mood on trading floors gave investors confidence to buy higher-risk currencies, pushing the South African rand more than 1 percent higher and Australia's dollar up 0.8 percent. The yuan climbed 0.7 percent.

The yuan was among the big gainers following a report that the US has called on China to stabilise the unit as part of any agreement between the world's top economic powers.

Observers say that while there are no details about the negotiations the fact they are still talking and China appeared responsive to the call for yuan stability was good news. (AFP)

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