Hong Kong Stocks Rise On Trade Talk Reports

Hong Kong shares ended the morning session with further gains on Wednesday, with reports of positive China-US trade talks providing support.

The Hang Seng Index rose 0.5 percent, to 31,234.

But on the mainland, the Shanghai Composite Index was down 0.1 percent, at 3,112, while the Shenzhen Composite Index slipped 0.2 percent, at 1,777.

Tokyo ended the morning 0.2 percent higher. Singapore were barely moved, while Wellington added 0.2 percent and Taipei put on 0.5 percent.

But while markets are generally positive, trading floors remain susceptible to bad news, warned Stephen Innes, head of Asia-Pacific trading at Oanda.

"Despite the absence of escalation in geopolitical risk, traders are all too knowing that we're little more than a spark away from re-igniting a free-for-all, whether its EU political risk, trade wars or the more probable escalation in Middle East tensions," he said.

On currency markets, the greenback is holding gains after last week's strong jobs report and expectations the Federal Reserve will lift interest rates next week.

And the euro was also enjoying attention again after last week's sell-off fuelled by political turmoil in Italy and Spain. The single currency was above US$1.17, having fallen to a 10-month low near US$1.15 last week. (AFP)

______________________________