HSI Soars As Cathay Signals Return To Profit

Hong Kong stocks finished with healthy gains on Wednesday as investors grow hopeful that the US and China will hammer out an agreement to resolve their long-running trade row.

The Hang Seng Index rose just over 1 percent, to 28,514.

Shares of Cathay Pacific hit a near 8-month high after the airline said it expected to post a profit for last year, after losing HK$1.2 billion in 2017.

The latest figure more than doubled analysts' estimates and Cathay shares ended the day

at HK$13.04, almost 8 percent higher.

On the mainland, the Shanghai Composite Index gained 0.2 percent, to 2,761 and the Shenzhen Composite Index added 0.3 percent, to 1,448.

Tokyo closed 0.6 percent higher.

Seoul, Taipei and Manila each climbed more than 1 percent, Singapore put on 0.4 percent and Wellington 0.3 percent. But Sydney slipped 0.2 percent.

Observers say that while there are no details about the negotiations the fact they are still talking and China appeared responsive to the call for yuan stability was good news. The yuan climbed 0.7 percent during the day.

The upbeat mood on trading floors gave investors confidence to buy higher-risk currencies, pushing the South African rand around 1 percent higher and Australia's dollar up 0.7 percent.

The pound held its gains after strong British jobs and wages data, while it was also getting support from hopes that Prime Minister Theresa May could win changes to her Brexit deal with the European Union as she heads to Brussels later in the day.

"The EU is showing some possible concessions about the timing of the exit, as [European Commission chief] Jean-Claude Juncker has said a delay beyond the European parliamentary elections in May would not be opposed, but the UK has to request it, which they have not done," said Alfonso Esparza, senior market analyst at Oanda. (AFP)