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Hong Kong stocks near 1-month high as US shutdown nears resolution


Hong Kong stocks traded near a one-month high on Tuesday, as a risk-on mood prevailed after lawmakers made headway in ending the longest US government shutdown, a key overhang weighing on sentiment.

The Hang Seng Index was little changed at 26,651.10 as of 10.06am local time. The Hang Seng Tech Index gained 0.3 per cent. On the mainland, the CSI 300 Index and the Shanghai Composite Index both retreated 0.2 per cent.

Chinese search-engine operator Baidu rallied 2.9 per cent to HK$129.40 and smartphone and electric-vehicle maker Xiaomi advanced 2.2 per cent to HK$43.28. HSBC Holdings added 2 per cent to HK$112.70 and AIA Group rose 1.7 per cent to HK$82.70.

The US Senate advanced a plan to end the shutdown and President Donald Trump expressed support for the bipartisan deal, a key development that makes it likely for the federal government to reopen soon. This will help investors regain access to official economic data that will offer more insights into the strength of the economy and clues on monetary policy.

Private reports over the past few weeks have given conflicting pictures about the jobs market, jolting equities that have been already battered by concerns over elevated valuations of technology stocks.

Elsewhere in Asia-Pacific, Japan’s Nikkei 225 climbed 0.7 per cent and South Korea’s Kospi jumped 2.2 per cent, while Australia’s S&P/ASX 200 slipped 0.1 per cent.


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