Hong Kong shares end higher after Trump says China trade deal 'fully intact'

Hong Kong shares reversed early losses to end more than 1.5% higher on Tuesday after President Donald Trump clarified that the U.S.-China trade deal was still in force, calming investors spooked by comments from a trade adviser. ** White House trade adviser Peter Navarro said on Fox News that the trade deal between Washington and Beijing was "over" pushing the Hang Seng index down as much as 1.33% in early trade.

Hong Kong shares reversed early losses to end more than 1.5% higher on Tuesday after President Donald Trump clarified that the U.S.-China trade deal was still in force, calming investors spooked by comments from a trade adviser.

** White House trade adviser Peter Navarro said on Fox News that the trade deal between Washington and Beijing was "over" pushing the Hang Seng index down as much as 1.33% in early trade.

** However, Navarro later walked back on his remarks saying the trade deal with China "continues in place" and Trump said in a tweet the deal with China was "fully intact".

** At the close of trade, the Hang Seng index was up 396.00 points or 1.62% at 24,907.34. The Hang Seng China Enterprises index rose 1.16% to 9,993.48.

** The sub-index of the Hang Seng tracking energy shares rose 0.3%. The financial sector ended 1.47% higher and the property sector rose 0.25%.

** The IT sector rose 4.04% boosted by Tencent Holdings Ltd, which jumped 4.89% and closed just short of an all-time high.

** Tencent was the top gainer on the Hang Seng, while the biggest loser was Link Real Estate Investment Trust, down 1.39%.

** China's main Shanghai Composite index closed up 0.18% at 2,970.62 points and the blue-chip CSI300 index ended up 0.48%.

** Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.98% and Japan's Nikkei index closed up 0.5%.

** The yuan was quoted at 7.0664 per U.S. dollar at 0810 GMT, 0.02% firmer than the previous close of 7.0678.