HSI Ends The Week With A Gain, Focus Shifts To Fed

Hong Kong shares closed higher while regional markets were mixed as investors hope for progress in trade negotiations between China and the United States.

Reports that Chinese and American officials have held what's described as a "very constructive" phone conference lifted market sentiment.

Investors are now closely watching plans for a round of face-to-face talks next month.

The Hang Seng Index rose 0.5 percent, to finish at 26,179. Market turnover was more than HK$74.2 billion.

Shares of CSPC Pharmaceutical and China Life Insurance each surged more than 3 percent. Sino Biopharmaceutical rallied just over 2 percent.

AIA saw its shares up 2 percent after it posted a 20-percent rise in new business for the first half of this year. The insurance giant also said sales slowed from June due partly to the extradition protests.

But shares of AAC Technology plunged almost 4 percent after the company recorded a 48-percent slump in interim profit.

Across the border, the Shanghai Composite Index added 0.5 percent, to to 2,897 while the Shenzhen Composite Index was flat, at 1,578.

In Japan, the Nikkei Index rose 0.4 percent. Taiwan ended marginally higher. But both South Korea and Singapore traded lower.