Hong Kong Stocks End Flat, Mainland Markets Soar

Hong Kong stock market ended almost flat on Tuesday, after Beijing scaled down its estimate for annual growth and unveiled huge tax cuts to boost the stuttering economy.

The Hang Seng Index ended, up just over two points, to 28,961.

On the mainland, the markets were more optimistic as investors also were encouraged by reports on China-US talks.

The Shanghai Composite Index climbed 0.9 percent, to 3,054, while the Shenzhen Composite Index added 2.3 percent, to 1,635.

Tokyo ended 0.4 percent lower, Sydney eased 0.3 percent, Singapore and Seoul were each 0.5 percent off and Taipei dropped 0.4 percent. Manila and Bangkok were also down.

Shares have enjoyed a blockbuster start to the year so far, but "trade optimism could only take the stock market so far", said Oanda senior market analyst Alfonso Esparza.

"High-level talks between the two largest economies have been ongoing and although they appear close to bearing fruit, the fact remains that the optimism has already been priced in," he added. "Details on the agreement will be needed to unlock gains."

Shares in Mumbai rose slightly while the rupee also made slight gains despite news that the US had cancelled its preferential trade status, saying it had failed to allow required market access.

However, New Delhi said the impact on its exports to the world's biggest economy would be limited. (AFP)