HSI extends gain as eyes turn to Fed meeting - RTHK
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HSI extends gain as eyes turn to Fed meeting

2019-06-18 HKT 17:04
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  • HSI has found strength as the situation in Hong Kong remained calm. File photo: RTHK
    HSI has found strength as the situation in Hong Kong remained calm. File photo: RTHK
Hong Kong stocks ended up 1 percent on Tuesday, building on the previous day's gains, as traders look ahead to a crucial meeting of the Federal Reserve later this week and a planned summit between President Xi Jinping and his US counterpart Donald Trump.

The Hang Seng Index ended the day at 27,498.

On the mainland, the Shanghai Composite Index ended up 0.1 percent, to 2,890 while the Shenzhen Composite Index added 0.2 percent, to 1,504.

Sydney rose 0.6 percent and Singapore put on 1 percent while Seoul added 0.4 percent. Wellington, Taipei, Mumbai and Jakarta also climbed, but Tokyo ended 0.7 percent lower as it was hit by a strengthening yen.

There has been increasing talk that the Fed will cut borrowing costs for the first time in more than a decade, although the expectation is for a move later on.

Investors are also gearing up for next week's high-stakes G20 summit, where Xi is pencilled in to meet Trump on the sidelines to discuss their trade war.

Officials on both sides have played down the likelihood of a deal being struck in Osaka but experts point out that some sort of breakthrough is in the interests of Beijing and Washington as their economies stutter.

"The trade war is starting to ebb away at US data," said Oanda senior market analyst Edward Moya. "Uncertainty on the trade front remains high and markets will remain undecided until we see the events at the G20 summit in Japan unfold."

On currency markets, the pound inched up but remains under pressure on growing worries that arch-Brexiter Boris Johnson will be elected leader of the ruling Conservatives to become prime minister, and pull Britain out of the EU without a divorce agreement.

Sterling is at five-month lows ahead of the next round of the party's leadership vote on Tuesday. (AFP)