HSI Extends Rally, Pound Regains Some Lost Ground

Hong Kong stocks finished higher on Tuesday, extending a rally to a fourth day as investors look ahead to the Federal Reserve's next policy meeting while the pound fought back against the US dollar after taking a hit from the latest twist in the Brexit saga.

The Hang Seng Index climbed 0.2 percent, to close at 29,466.

On the mainland, the Shanghai Composite Index lost 0.2 percent, to 3,090 but the Shenzhen Composite Index edged up 0.2 percent, to 1,688.

Tokyo ended 0.1 percent weaker. Sydney, Singapore and Seoul were each 0.1 percent off, while Wellington, Manila and Taipei were also slightly down.

The pound was slowly edging back up against the dollar after taking a hit from fresh Brexit uncertainty sparked by Prime Minister Theresa May being told by the House of Commons speaker that she would not be allowed to hold another vote on her exit deal.

Analysts said the latest news has left many scratching their heads.

Even with "all of this added uncertainty, the pound managed to hold up fairly well, despite sliding back on the day, presumably because markets think that when it comes down to it MPs will finally act and pullback from the precipice of 'no deal'", said Michael Hewson, chief market analyst at CMC Markets.

The sterling was trading at US$1.3275 and HK$10.42 by Tuesday evening. (AFP)