HSI Rises, But Political Worries Keep Markets Edgy

Hong Kong shares ended on Thursday in positive territory after fluctuating through the day but investors remain on edge over China-US trade and Donald Trump's planned summit with North Korean leader Kim Jong-un.

The Hang Seng Index added 0.3 percent, to 30,760.

On the mainland, the Shanghai Composite Index slipped 0.5 percent, to 3,154 and the Shenzhen Composite Index lost 0.4 percent, to 1,827.

Japan's Nikkei was the biggest loser in Asia, shedding more than 1 percent in the morning session as the yen surged against the greenback to its highest level in nine days.

Singapore added 0.6 percent but Seoul shed 0.2 percent and Sydney was slightly higher.

Wellington, Taipei, Manila and Jakarta were all up and Bangkok was down.

As the latest developments fuel uncertainty, investors have shifted into the Japanese unit, which is seen as a safe haven.

Adding to selling in the greenback were the Fed minutes, which showed it may be willing to let inflation run slightly higher and above its two percent target, as long as the spikes were temporary.

The comments soothed worries about a sharp hike in borrowing costs, which have been needling markets for several months.

The euro edged up but is still wallowing around levels not seen since mid-November as traders fret over the impact on the Italian economy of a new populist government, which has promised big tax cuts, big spending measures and the rollback of reforms. (AFP)