HSI Gains In Cautious Asian Trade, Pound Rises

Hong Kong stocks finished the morning session with slight gains on Thursday as investors keep tabs on developments in the China-US trade standoff ahead of talks next week.

The Hang Seng Index added 0.1 percent, to 27,045.

On the mainland, the Shanghai Composite Index gained 0.5 percent, to 2,594 while the Shenzhen Composite Index climber 0.7 percent, to 1,325.

Other Asian markets trod cautiously as they try to ascertain the state of play in the China-US trade row, while the pound edged higher on growing optimism Britain will not crash out of the European Union.

Tokyo ended the morning 0.4 percent lower.

Sydney was 0.1 percent off and Seoul edged up 0.2 percent while Singapore added 0.3 percent and Wellington eased 0.1 percent. Taipei, Manila and Jakarta edged up.

The pound edged up and is holding at two-month highs against the US dollar despite Prime Minister Theresa May's controversial agreement being soundly defeated by MPs last week.

Traders are increasingly "convinced that the 'worst' that might happen on Brexit is that May's previously doomed Withdrawal Agreement might actually get over the line if the 'hard Brexiteers' in her government become convinced that the alternative is a (delay in leaving), a second referendum and potentially no Brexit", said National Australia Bank Ray Attrill. (AFP)

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