HSI Rises As Traders Ignore Recession Report

Hong Kong shares ended Friday's morning session on a positive note as investors brushed off trade worries and data showing the city's economy contracted more than expected in the third quarter.

The Hang Seng index climbed 0.4 percent, to 27,020.

On the mainland, the Shanghai Composite Index gained 0.7 percent, to 2,950 while the Shenzhen Composite Index rose 1 percent, to 1,631.

Other Asian markets were mixed but about the China-US trade talks returned to the fore after a report said Beijing officials had raised doubts about the chances of a long-term deal.

Seoul added 0.5 percent and Sydney edged up 0.1 percent. However, Tokyo and Singapore each retreated 0.4 percent, while Wellington and Jakarta were also lower.

But analysts were nervous about a Bloomberg report which said Chinese officials were sceptical they would be able to reach a comprehensive long-term deal.

"The article proved a not-too-subtle reminder of how quickly trade war sentiment can pivot and highlighting those fears that we all knew about but were perhaps was too wrapped up [in] the phase one euphoria to recognise," said AxiTrader's Stephen Innes.

"Specifically, the trust gap is the bridge too far and what's going on behind the shiny veneer of an apparent trade detente, the thorny Hong Kong protest bill," he added, referring to US lawmakers passing a bill defending civil rights in the financial hub. (AFP)

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