Trade Talk News Lifts Hong Kong, Mainland Markets

Hong Kong stocks climbed in the morning session on Wednesday, boosted by renewed hopes for progress in the China-US trade standoff.

The Hang Seng Index rose 0.9 percent, to 28,730 by the break.

On the mainland, the Shanghai Composite Index soared over 1 percent, to to 2,929 while the Shenzhen Composite Index jumped 1.3 percent, to 1,567.

The traders were in an upbeat mood over reports that Donald Trump's Trade Representative Robert Lighthizer will lead a delegation to China next week to resume trade talks.

Most other Asian markets also enjoyed another day of gains, with support coming from more healthy earnings results.

Tokyo went into the break 0.5 percent higher. Sydney gained 0.8 percent and Singapore put on 0.3 percent but Taipei and Seoul each dipped 0.1 percent while Wellington and Manila also fell.

On currency markets, the pound remained stuck around two-year lows against the US dollar after Boris Johnson's expected leadership win, which means he will be appointed prime minister later Wednesday.

"Boris Johnson has vowed to deliver Brexit by the October 31 deadline, 'do or die'," said Quentin Fitzsimmons, an asset manager at T. Rowe Price, adding this would be a tough ask as he comes up against the same problems that befell Theresa May.

"The UK parliament has rejected the withdrawal agreement that May struck with the European Union, the EU has stated firmly that it will not renegotiate that agreement, and the majority of members of parliament remain opposed to the UK leaving the EU without a deal being agreed upon." (AFP)

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