HSI Up, Mainland Markets Soar On Beijing Pledge

Hong Kong shares ended ended the day with modest gains, resuming an uptrend on optimism about the China-US trade talks.

The Hang Seng Index added 0.3 percent, to 29,037.

On the mainland, Shanghai stocks staged another rally, extending its latest winning run to a fourth day, following Beijing's tax cut pledge.

The benchmark Shanghai Composite Index climbed 1.6 percent, to 3,102 and the Shenzhen Composite Index was up 1.5 percent, at 1,660.

Mainland markets are up more than 20 percent this year thanks to trade hopes and following a series of monetary easing measures to kickstart economic growth, which hit its slowest pace in three decades last year.

Sydney finished 0.8 percent higher after data showed Australia's economy virtually ground to a halt in October-December owing to tepid household spending and a weakening housing market.

The news has fuelled speculation the central bank will have to cut already record-low borrowing costs, cheering equity markets but sending the Australian dollar tumbling about 0.6 percent against the greenback.

Elsewhere, Manila jumped 1.4 percent, Mumbai added 0.4 percent and Taipei gained 0.5 percent, while Wellington edged up 0.2 percent.

However, Tokyo ended down 0.6 percent, Singapore was off 0.1 percent and Seoul fell 0.2 percent.

On currency markets the pound struggled to recover from losses against the greenback after talks between British and EU negotiators failed to hammer out a revised Brexit deal that Prime Minister Theresa May can pass through parliament.

However, observers are optimistic an agreement can be reached and Britain will not leave the bloc without a deal.

"Any deal that is agreed has a higher chance of getting voted through than was the case in January when the deal was shot down by parliament," said James Hughes, chief market analyst at AxiTrader.

"Brexiteers fearful of Brexit being reversed could be more prone to back May, provided she can get a legal concession" on customs on the Northern Irish border." (AFP)