HSI Gains As Asian Markets Recover From Trump Jolt

Hong Kong stocks went into the break with gains on Wednesday as traders weighed Donald Trump's decision to cut off stimulus talks against his call for lawmakers to pass big cash handouts and help small businesses.

The Hang Seng Index added 0.5 percent, to 24,091.

The markets on the mainland were closed for a public holiday.

Most other Asian markets fell immediately after opening over Trump's move, many recovered and were mixed in morning trade.

Tokyo, Singapore, Manila, Bangkok and Jakarta were in the red, but Seoul added 0.3 percent.

Sydney put on more than 1 percent, helped by a huge tax-cutting budget by the Australian government late on Tuesday. There were also gains in Mumbai, Taipei and Wellington.

Trump cancelled talks with Democrats in a Tweet saying that negotiations will stop until after the election, when he promises a major stimulus bill.

That sent Wall Street tumbling and safe assets like the dollar and bonds higher. Investors in Asia, however, seemed less rattled, holding a view that stimulus would be delayed rather than derailed.

"Trump's decision only delays fiscal stimulus and will likely be met with some further accommodation by the Fed," said Edward Moya at Oanda.

"Fiscal stimulus will happen, and Wall Street is still counting on a blue wave (of Democrats winning across the board) that will deliver a huge spending plan that will keep the risky assets supported all of next year." (AFP, Reuters)

______________________________