HSI Jumps On Trade Talk Hopes, Oil Prices Rise

Hong Kong stocks surged more than 2 percent on Friday on optimism over China-US trade talks, while energy firms were boosted by a spike in oil prices after an Iranian tanker was hit by a double explosion in the Gulf.

The Hang Seng Index jumped 2.3 percent, over 600 points, to 26,308.

On the mainland, the Shanghai Composite Index added 0.9 percent, to 2,973 while the Shenzhen Composite Index climbed 0.3 percent, to 1,636.

China-US talks are expected to resume on Friday with hopes they can at least lead to a delay in tariffs, due next week, being imposed on China.

"The prospect of US-China trade truce that results in the suspension of further planned tariffs increases is rightly welcome news," Rodrigo Catril at National Australia Bank said.

"But as it is often the case, the devil will be in the detail," he warned, adding that if the optimism is to last "a meaningful de-escalation in tensions is required".

Tokyo added more than 1 percent, and Sydney put on 0.9 percent. Singapore and Seoul both gained 0.8 percent, with healthy gains also recorded in Wellington, Manila, Mumbai and Jakarta.

Markets are also getting some support from rare signs of progress in the Brexit saga after British Prime Minister Boris Johnson and his Irish counterpart Leo Varadkar said they could see a route towards striking a possible divorce deal.

The pound surged 2 percent against the US dollar overnight and also rallied on the euro, and managed to hold its ground in Asia, trading at HK$9.80 in the local market.

Oil prices surged more than 2 percent after an Iranian tanker was hit by suspected missile strikes in Saudi Arabia, sparking fresh supply concerns in the already-tense Gulf region. (AFP)