HSI Extends Gain, Japan Market Jumps 2.7 Percent

Hong Kong stocks rallied on Tuesday, extending the previous day's gains following a surge on Wall Street as fears about a possible US-China trade war eased.

The Hang Seng Index added 0.8 percent, to end at 30,790.

On the mainland, the Shanghai Composite Index rose 1.1 percent, to 3,166, and the Shenzhen Composite Index surged 2.2 percent, to 1,829.

Strong performances by Wall Street overnight lifted most Asian markets, with Tokyo closing 2.7 percent higher thanks to a drop in the yen against the US dollar, as traders shift out of assets considered safe in times of uncertainty and turmoil.

Sydney ended 0.7 percent higher. Singapore put on 0.4 percent and Wellington rose 0.9 percent, while Taipei, Manila and Jakarta were all healthily up.

Seoul rose 0.6 percent and the won climbed more than 1 percent against the greenback on speculation Kim was visiting Beijing. It would be his first trip outside North Korea since assuming power at the end of 2011.

While it was up against the yen, the dollar took a hit against most other currencies as optimistic traders shifted to higher-yielding, riskier units.

"The dollar is getting whacked with the nasty stick, but hardly surprising as the bar for dollar strength remains incredibly low," said Stephen Innes, head of Asia-Pacific trading at Oanda.

The Indonesian rupiah, Thai baht, South African rand and Mexican peso were all higher. The Russian ruble sank after more than 100 alleged agents working under diplomatic cover were ordered out by 21 world governments. (AFP)