Hong Kong Stocks Rally, Asian Markets Mixed

Hong Kong stocks built on recent gains to end Wednesday morning higher, lifted by a surge in energy firms and on easing concerns about a China-US trade war.

The Hang Seng Index rose 0.75 percent, or 231.98 points, at 30,960.72.

On the mainland, the Shanghai Composite Index added 0.2 percent, to 3,197, while the Shenzhen Composite Index gained 0.2 percent, to 1,845.

Energy firms soared with oil prices in Asia on Wednesday but broader markets flitted between gains and losses after the previous day's rally, with hopes that a China-US trade war will be averted providing support.

President Xi Jinping soothed world markets on Tuesday with a conciliatory speech pledging to further open up the world's number two economy.

Tokyo ended the morning 0.2 percent down. Singapore gained 0.4 percent, Seoul edged down marginally and Taipei put on 0.4 percent. Sydney fell 0.3 percent and Wellington also slipped.

"In a market starved of good news, Xi's dialled back trade war rhetoric was music to investor's ears," said Stephen Innes, head of Asia-Pacific trading at Oanda.

However, he cautioned: "While investors are relishing this moment, trade war issues are not about to leave the political stage any time soon. In fact President Xi's remarks, while conciliatory to tariffs, were restatements of previous pledges with no new compromises to President Trump."

Energy firms were among the biggest gainers after a rally of more than 3 percent for both main oil contracts on Tuesday.

Hong Kong-listed CNOOC and PetroChina were each around three percent higher and Sinopec was more than one percent up. Inpex surged three percent in Tokyo and Woodside Petroleum gained 1.4 percent in Sydney.

However, oil fell in Asia on Wednesday ahead of the release of US stockpiles figures, with data suggesting there could have been a rise in the past week, indicating weak demand. (AFP)

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