Trump Comments Lift HSI, Mainland Markets

Hong Kong stocks advanced Wednesday morning, tracking Wall Street after US President Donald Trump boosted hopes for a trade deal with China.

Trump said "things are going well" at preliminary talks in Beijing, where top economic officials will gather on Thursday seeking an accord to stop sharp US tariff hikes that could damage the global economy.

The Hang Seng Index rose 0.8 percent, to 28,397 by the break.

On the mainland, the Shanghai Composite Index added 0.9 percent, to 2,697, while the Shenzhen Composite Index gained 1.2 percent, to 1,380.

Tokyo added 1.5 percent following Wall Street's lead.

However, some analysts struck a cautious tone, noting that much work needs to be completed before a framework agreement is in reach.

"The rally in stocks has been based on hope rather than any concrete agreements overnight," warned Oanda senior analyst Jeffrey Halley, predicting short-term volatility to come as headlines emerge from Beijing.

Sydney shed 0.3 percent, with calls for a snap election amid political tensions over refugees adding to underwhelming corporate earnings and subdued metal prices. (AFP)

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