MSCI Link, New Data Lift Hong Kong, Shanghai

Hong Kong stocks ended higher on Friday on refreshed hopes for the China-US trade talks, while investors were also cheered by data indicating a slight improvement in Chinese factory activity.

The Hang Seng Index in Hong Kong added 0.6 percent, to 28,812.

On the mainland, the Shanghai Composite Index closed 1.8 percent up, at 2,994 while the Shenzhen Composite Index closed 1.2 percent higher, at 1,564.

This came after a private gauge showed factory activity on the mainland improved last month and beat expectations, providing hopes for stability in economy.

Adding to the interest in mainland equities was news that index compiler MSCI will increase the weighting of Chinese-listed stocks in its benchmark indices and nearly double the number of companies included.

Tokyo climbed 1 percent thanks to a weaker yen. Sydney rose 0.4 percent, Singapore and Wellington each edged up 0.3 percent and Jakarta put on 0.9 percent. Taipei and Seoul were closed for public holidays.

In forex markets, the US dollar held gains against most of its peers after the growth figures were released, though the pound remains supported by easing concerns about a possible no-deal Brexit.

"The market is now moving on the premise that the US-China talks are making progress, and that 'a no-deal Brexit' would be avoided," Resona Bank said in a commentary.

However, it warned: "It should be noted that there are risks that ultimately there may be no deals". (AFP)