HSI Edges Up, Mainland Stocks Continue Rally

Hong Kong stocks ended the morning slightly higher on Tuesday following reports of a deal to avoid a new US government shutdown, and hopes for trade talks between Beijing and Washington.

The Hang Seng Index rose 0.2 percent, to 28,188 by the break.

On the mainland, the Shanghai Composite Index rose 0.6 percent, to 2,670 while the Shenzhen Composite Index jumped 1.4 percent, to 1,366.

Tokyo – returning from Monday's public holiday – rose 2 percent. Japanese exporters benefited as a resurgent dollar left the yen at its weakest level in six weeks.

Sydney rose 0.4 percent, Taipei added 0.7 percent and Seoul 0.5 percent.

The dollar has returned to early January levels on the US currency's longest unbroken rally in two years, as concern builds over poor growth forecasts in Europe and elsewhere.

Elsewhere, the British pound clawed back some losses after dropping on dismal monthly GDP and manufacturing data. (AFP)

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