Hong Kong Stocks Bounce Back, Shanghai Jumps

Hong Kong stocks rallied more than one percent on Tuesday, recovering from early selling to join a regional advance, with eyes now on the release of mainland economic growth data.

The Hang Seng Index rose 1.1 percent, to close at 30,129.

On the mainland, the Shanghai Composite Index jumped 2.4 percent, to 3,253 and the Shenzhen Composite Index climbed 2.1 percent, to 1,760.

Most other Asian markets rose after a slow start to the day, as investors brushed off a weak lead from Wall Street.

Tokyo was up 0.2 percent while Sydney gained 0.4 percent, Singapore added 0.2 percent, Seoul rose 0.3 percent and Taipei jumped 0.6 percent.

Wellington, Manila, Mumbai and Jakarta were also well up.

Focus turns now to the mainland's growth figures, which come after a number of upbeat readings on the world's number two economy – including factory activity, inflation, new loans and trade – that have given some cause for optimism.

High-level talks between China and the United States aimed at ending their long-running trade war are also being closely followed, with most observers optimistic they would reach a deal.

"The data from both China and the US has been consistently upbeat of late, suggesting things may not get as bad as the doomsayers are proclaiming," said Oanda senior market analyst Jeffrey Halley.

"That said, without sounding like a broken record, a resolution of the US-China trade issues must occur before a more complete picture of what 2019 holds for the global economy can be built." (AFP)