HONG KONG (Nikkei Markets) -- Hong Kong shares erased early losses to end at a fresh three-month high on Thursday, after Beijing said it had reached an agreement with Washington to roll back tariffs on each other's goods in phases.
China's Ministry of Commerce on Thursday said the proportion of tariffs to be cancelled must be the same for both sides to reach phase one of a trade deal.
The Hang Seng Index rose 0.6% to 27,847.23, its highest level since July 30.
"We still do not have details of the phase one deal, so the upside will be limited," Andrew Sullivan, a director at Hong Kong-based investment firm Pearl Bridge Partners, said.
The timing and location for the signing of the first part of the trade deal remain uncertain. The Hang Seng Index had declined as much as 0.6% earlier amid reports of delays. Presidents Donald Trump and Xi Jinping may not be able to sign a preliminary trade deal until December, Bloomberg reported Thursday, citing a person familiar with the matter. Meanwhile, Reuters cited a Trump administration official as saying that a meeting could possibly take place in London in early December after a NATO summit that Trump is due to attend.
Daniel So, strategist at CMB International, said while the Hang Seng Index is "still solid," he remains "cautious on fundamentals. Phase one of the U.S.-China deal is the easiest part."
In the mainland, the Shanghai Composite Index ended unchanged after slipping 0.3% earlier. The yuan traded onshore recouped intraday losses to rise 0.1% to 6.9877 against the dollar.
Shares of Lenovo Group slipped 0.3% in Hong Kong even as the world's largest personal computer maker reported a 20% rise in quarterly net profit on the back of strong growth in the mainstay PC and smart devices business.
Geely Automobile Holdings edged 0.4% higher after reporting a 1% year-over-year increase in October sales volume.
Casino operator Wynn Macau dropped 0.9% after saying net profit for the September quarter more than halved from a year ago and revenue fell 18.2%.
Galaxy Entertainment Group ended flat at HK$55.30 after falling as much as 1.6% earlier following a 2% decrease in third-quarter revenue.
CK Life Sciences International surged 23.3%, extending a 153% rally on Wednesday. The company on Wednesday said its unit will present clinical data from its ongoing phase III study for seviprotimut-L, an investigational melanoma vaccine candidate, at the Society for Immunotherapy of Cancer's annual meeting in the U.S. The company said initial data from ongoing late-stage clinical trials for the drug are encouraging and show promise.
Automotive parts maker Johnson Electric Holdings jumped 11.2% after reporting a 15.5% increase in net profit for the six months ended Sept. 30.
-- Benny Kung