HSI Edges Up, Shanghai Soars As Trade Talks Resume

Hong Kong stocks ended the morning slightly up on Monday, reversing early losses as traders brace for major US-China trade talks in Beijing.

The Hang Seng Index rose 0.2 percent, to 28,009 by the break.

On the mainland, the Shanghai Composite Index rose 0.8 percent by the midday break, to 2,639 while the Shenzhen Composite Index jumped 2.2 percent, to 1,338.

Tokyo was closed for a holiday.

The investors were closely watching the talks that got underway in Beijing on Monday, to solve the trade tiff between China and the United States.

Failure to agree a deal between the two economic superpowers before March 1 would see punitive US duties on US$200 billion in Chinese goods more than double.

"There's a sense of urgency to this round," said Jeffrey Halley, senior market analyst at Oanda.

He added: "If no deal is agreed by then, a belligerent President Trump and US Congress will be more than willing to simply extend the trade war so China will need to make the first move if they are to reach a detente." (AFP)

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